us-irs-revenue-rulings-irb-2009-26-pdf•Internal Revenue Bulletin 2009-26 (PDF rendition): IRS Revenue Rulings
Internal Revenue Bulletin 2009-26 (PDF rendition): IRS Revenue Rulings
us-irs-revenue-rulings-irb-2009-26-pdfInternal Revenue Bulletin 2009-26 (PDF rendition): IRS Revenue RulingsGuidance
Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.
Bulletin No. 200 9-26 June 29, 2009 HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. INCOME TAX Rev. Rul. 2009–17, page 1111. Interest rates; underpayments and overpayments.The rates for interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 2009, will be 4 per- cent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corpo- rate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 per- cent. Notice 2009–50, page 1118. This notice provides guidance on the maximum face amount of recovery zone economic development bonds and recovery zone facility bonds that may be issued by each state and the counties and large municipalities in such state before January 1, 2011 under sections 1400U–2 and 1400U–3 of the Code as provided in section 1400U–1. Notice 2009–54, page 1124. This notice sets forth a process that allows manufacturers to certify to the Service that a particular vehicle meets the require- ments of section 30D of the Code. Taxpayers purchasing such vehicles can rely on the domestic manufacturer (or, in the case of a foreign manufacturer, its domestic distributor) to certify that a particular make, model, and model year of vehicle quali- fies as a plug-in electric drive motor vehicle under section 30D, and to certify the amount of the credit allowable with respect to the vehicle. EXEMPT ORGANIZATIONS Announcement 2009–54, page 1128. The IRS has revoked its determination that Home Ownership Providers, Inc., of Marietta, GA; and Wasatch Homes Charitable Foundation of Draper, UT, qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code. Announcements of Disbarments and Suspensions begin on page 1128. Fi nding Lists begin on page ii. Index for January through June begins on page vi. The IRS Mission Provide Americ a’s taxpayers top quality service by helping them understand an d meet their tax responsibilities and by applying the tax law with integrity and fairness to all. Introduction The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conven- tions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are compiled semiannually into Cumulative Bulletins, which are sold on a single-copy basis. It is the policy of the Service to publish in the Bulletin all sub- stantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, mod- ify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indi- cated. Procedures relating solely to matters of internal man- agement are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows: Part I.—19 86 Code. This part i ncludes rulings and decisions based on provisions of the Intern al Revenue Code of 1986. Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Leg- islation and Related Committee Reports. Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rul- ings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secre- tary (Enforcement). Part IV .—Items of General Interest. This par t includes notices of proposed rulemakings, disbar- ment an d suspension lists, and announcements. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. The c ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402. June 29, 20092009–26 I.R.B. Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Section 1400U –1.—Alloca- tion of Recove ry Zone Bonds A notice that p rovides guidance regarding the maximum face a mount of recovery zone economic development b onds and recovery zone facility bonds, that may be is sued by each State and counties and large munici palities within each State before January 1, 2011 under sections 1400U–2 and 1400U–3, re- spectively, of the Internal Revenue Code (“Code”), as provided in section 1400U–1 of the Code. See Notice 2009 -50, page 1118. Section 6621.—Determina- tion of Rate of Interest 26 CFR 301.6621–1: Interest rate. Interest rates; underpayments and overpayments.The rates for interest de- termined under section 6621 of the Code for the calendar quarter beginning July 1, 2009, will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 percent. Rev. Rul. 2009–17 Section 6621 of the Internal Revenue Code establishes the rates for interest on tax overpayments and tax underpay- ments. Under section 6621(a)(1), the overpayment rate is the sum of the federal short-term rate plus 3 percentage points (2 percentage points in the case of a cor- poration), except the rate for the portion of a corporate overpayment of tax exceed- ing $10,000 for a taxable period is the sum of the federal short-term rate plus 0.5 of a percentage point. Under section 6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points. Section 6621( c) provides that for pur- poses of inter est payable under section 6601 on any lar ge corporate underpay- ment, the und erpayment rate under section 6621(a)(2) i s determined by substituting “5 percentag e points” for “3 percentage points.” See section 6621(c) and section 301.6621–3 of the Regulations on Proce- dure and Adm inistration for the definition of a large co rporate underpayment and for the rule s for determining the appli- cable date. Section 6621(c) and section 301.6621– 3 are generally effective for periods af ter December 31, 1990. Section 66 21(b)(1) provides that the Secretary will determine the federal short-ter m rate for the first month in each calendar q uarter. Section 6621(b)(2)(A) provides that the federal short-term rate determin ed under section 6621(b)(1) for any month applies during the first calen- dar quart er beginning after that month. Section 6 621(b)(3) provides that the fed- eral sho rt-term rate for any month is the federal short-term rate determined during that mon th by the Secretary in accordance with sec tion 1274(d), rounded to the near- est ful l percent (or, if a multiple of 1 /2of 1 perce nt, the rate is increased to the next highes t full percent). Notice 88–59, 1988–1 C.B. 546, an- nounce d that, in determining the quarterly intere st rates to be used for overpayments and und erpayments of tax under section 6621, the Internal Revenue Service will use th e federal short-term rate based on daily compounding because that rate is most c onsistent with section 6621 which, pursu ant to section 6622, is subject to daily comp ounding. The fe deral short-term rate determined in ac cordance with section 1274(d) during Apri l 2009 is the rate published in Rev- enue Rule 2009–12 to take effect begin- ning May 1, 2009. The federal short-term rate, rounded to the nearest full percent, the federal short -term rate based on daily com- pounding dete rmined during the month of April 2009 is 1 percent. Accordingly, an overpayment rate of 4 percent (3 percent in the case of a corporation) and an under- payment rate of 4 percent are established for the cale ndar quarter beginning July 1, 2009. The ov erpayment rate for the por- tion of a cor porate overpayment exceeding $10,000 for the calendar quarter beginning July 1, 2009 , is 1.5 percent. The under- payment ra te for large corporate underpay- ments for t he calendar quarter beginning July 1, 200 9, is 6 percent. These rates ap- plytoamou nts bearing interest during that calendar quarter. Interest f actors for daily compound in- terest fo r annual rates of 1.5 percent, 3 per- cent, 4 pe rcent, and 6 percent are published in Tables 8, 11, 13, and 17 of Rev. Proc. 95–17, 19 95–1 C.B. 556, 562, 565, 567, and 571. Annual in terest rates to be compounded daily pur suant to section 6622 that apply for prio r periods are set forth in the tables accompa nying this revenue ruling. DRAFTIN G INFORMATION The prin cipal author of this revenue rul- ing is De borah Colbert-James of the Of- fice of A ssociate Chief Counsel (Proce- dure & A dministration). For further infor- mation regarding this revenue ruling, con- tact Ms . Colbert-James at (202) 622–8143 (not a t oll-free call). 2009–26 I.R.B.1111June 29, 2009 TABLE OF INTEREST RATES PERIODS BEFORE JUL. 1, 1975 — PERIODS ENDING DEC. 31, 1986 OVERPAYMENTS AND UNDERPAYMENTS PERIODRATE In 1995–1 C.B. DAILY RATE TABLE Before Jul. 1, 1975 6% Table 2, pg. 557 Jul. 1, 1975—Jan. 31, 1976 9% Table 4, pg. 559 Feb. 1, 1976—Jan. 31, 19787% Table 3, pg. 558 Feb. 1, 1978—Jan. 31, 19806% Table 2, pg. 557 Feb. 1, 1980—Jan. 31, 198212% Table 5, pg. 560 Feb. 1, 1982—Dec. 31, 198220% Table 6, pg. 560 Jan. 1, 1983—Jun. 30, 198316% Table 37, pg. 591 Jul. 1, 1983—Dec. 31, 198311% Table 27, pg. 581 Jan. 1, 1984—Jun. 30, 198411% Table 75, pg. 629 Jul. 1, 1984—Dec. 31, 198411% Table 75, pg. 629 Jan. 1, 1985—Jun. 30, 1985 13% Table 31, pg. 585 Jul. 1, 1985—Dec. 31, 1985 11% Table 27, pg. 581 Jan. 1, 1986—Jun. 30, 198610% Table 25, pg. 579 Jul. 1, 1986—Dec. 31, 19869% Table 23, pg. 577 TABLE OF INTEREST RATES FROM JAN. 1, 1987 — DEC. 31, 1998 OVERPAYMENTSUNDERPAYMENTS 1995–1 C.B.1995–1 C.B. RATE TABLEPGRATE TABLEPG Jan. 1, 1987—Mar. 31, 19878%21 575 9%23 577 Apr. 1, 1987 —Jun. 30, 1987 8%21 575 9%23 577 Jul. 1, 1987—Sep. 30, 19878%21 575 9%23 577 Oct. 1, 1987—Dec. 31, 19879%23 577 10% 25579 Jan. 1, 198 8—Mar. 31, 1988 10%7362711% 75 629 Apr. 1, 1988—Jun. 30, 19889%71 625 10%73627 Jul. 1, 1988—Sep. 30, 19889%71 625 10%73627 Oct. 1, 19 88—Dec. 31, 1988 10%7362711% 75 629 Jan. 1, 1989—Mar. 31, 198910% 25579 11%27 581 Apr. 1, 1989—Jun. 30, 198911%27 581 12%29 583 Jul. 1, 1 989—Sep. 30, 1989 11%27 581 12%29 583 Oct. 1, 1989—Dec. 31, 198910% 25579 11%27 581 Jan. 1, 1990—Mar. 31, 199010% 25579 11%27 581 Apr. 1, 1990—Jun. 30, 1990 10% 25579 11%27 581 Jul. 1, 1990—Sep. 30, 199010% 25579 11%27 581 Oct. 1, 1990—Dec. 31, 199010% 25579 11%27 581 Jan. 1, 1991—Mar. 31, 1991 10% 25579 11%27 581 Apr. 1, 1991—Jun. 30, 19919%23 577 10% 25579 Jul. 1, 1991—Sep. 30, 19919%23 577 10% 25579 Oct. 1 , 1991—Dec. 31, 1991 9%23 577 10% 25579 Jan. 1, 1992—Mar. 31, 19928%696239%71 625 Apr. 1, 1992—Jun. 30, 19927%676218%69623 Jul. 1, 1992—Sep. 30, 1992 7%676218%69623 Oct. 1, 1992—Dec. 31, 19926% 65 6197%67621 Jan. 1, 1993—Mar. 31, 19936%17 571 7%19 573 Apr . 1, 1993—Jun. 30, 1993 6%17 571 7%19 573 Jul. 1, 1993—Sep. 30, 19936%17 571 7%19 573 Oct. 1, 1993—Dec. 31, 19936%17 571 7%19 573 Ja n. 1, 1994—Mar. 31, 1994 6%17 571 7%19 573 Apr. 1, 1994—Jun. 30, 19946%17 571 7%19 573 Jul. 1, 1994—Sep. 30, 19947%19 57 3 8%21 57 5 June 29, 200911122009–26 I.R.B. TABLE OF INTEREST RATES FROM JAN. 1, 1987 — DEC. 31, 1998 – Continued OVERPAYMENTSUNDERPAYMENTS 1995–1 C.B.1995–1 C.B. RATE TABLEPGRATE TABLEPG Oct. 1, 1994—Dec. 31, 19948%21 575 9%23 577 Jan. 1, 1995—Ma r. 31, 1995 8%21 575 9%23 577 Apr. 1, 1995—Jun. 30, 1995 9%23 577 10% 25579 Jul. 1, 1995—Sep. 30, 1995 8%21 575 9%23 577 Oct. 1, 1995—D ec. 31, 1995 8%21 575 9%23 577 Jan. 1, 1996—M ar. 31, 1996 8%696239%71 625 Apr. 1, 1996—Jun. 30, 19967%676218%69623 Jul. 1, 1996—Sep. 30, 19968%696239%71 625 Oct. 1, 1996— Dec. 31, 1996 8%696239%71 625 Jan. 1, 1997—Mar. 31, 19978%21 575 9%23 577 Apr. 1, 1997—Jun. 30, 19978%21 575 9%23 577 Jul. 1, 1997 —Sep. 30, 1997 8%21 575 9%23 577 Oct. 1, 1997—Dec. 31, 19978%21 575 9%23 577 Jan. 1, 1998—Mar. 31, 19988%21 575 9%23 577 Apr. 1, 1998 —Jun. 30, 1998 7%19 573 8%21 575 Jul. 1, 1998—Sep. 30, 19987%19 573 8%21 575 Oct. 1, 1998—Dec. 31, 19987%19 573 8%21 575 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS 1995–1 C.B . RATETABLEPG Jan. 1, 199 9—Mar. 31, 1999 7%19 573 Apr. 1, 1999—Jun. 30, 19998%21 575 Jul. 1, 1999—Sep. 30, 19998%21 575 Oct. 1, 19 99—Dec. 31, 1999 8%21 575 Jan. 1, 2000—Mar. 31, 20008%69623 Apr. 1, 2000—Jun. 30, 20009%71 625 Jul. 1, 2 000—Sep. 30, 2000 9%71 625 Oct. 1, 2000—Dec. 31, 20009%71 625 Jan. 1, 2001—Mar. 31, 20019%23 577 Apr. 1, 2 001—Jun. 30, 2001 8%21 575 Jul. 1, 2001—Sep. 30, 20017%19 573 Oct. 1, 2001—Dec. 31, 20017%19 573 Jan. 1, 2002—Mar. 31, 2002 6%17 571 Apr. 1, 2002—Jun. 30, 20026%17 571 Jul. 1, 2002—Sep. 30, 20026%17 571 Oct. 1 , 2002—Dec. 31, 2002 6%17 571 Jan. 1, 2003—Mar. 31, 2003 5%15569 Apr. 1, 2003—Jun. 30, 2003 5%15569 Jul. 1, 2003—Sep. 30, 2003 5%15569 Oct. 1, 2003—Dec. 31, 20034%13 567 Jan. 1, 2004—Mar. 31, 20044%61 615 Apr . 1, 2004—Jun. 30, 2004 5% 63617 Jul. 1, 2004—Sep. 30, 20044%61 615 Oct. 1, 2004—Dec. 31, 2004 5% 63617 Jan. 1, 2005—Mar. 31, 20055%15569 Apr. 1, 2005—Jun. 30, 2005 6%17 571 Ju l. 1, 2005—Sep. 30, 2005 6%17 57 1 Oct. 1, 2005—Dec. 31, 2005 7%19 573 Jan. 1, 2006—Mar. 31, 20067%19 573 2009–26 I.R.B.1113June 29, 2009 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT – Continued NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS 1995–1 C.B. RATETABLEPG Apr. 1, 2006—Jun. 30, 20067%19 573 Jul. 1, 2006—Sep. 30, 20068%21 575 Oct. 1, 2006—Dec. 31, 20068%21 575 Jan. 1, 2007—Mar. 31, 20078%21 575 Apr. 1, 2007—Jun. 30, 20078%21 575 Jul. 1, 2007—Sep. 30, 20078%21 575 Oct. 1, 2007—Dec. 31, 20078%21 575 Jan. 1, 2008—Mar. 31, 20087%67621 Apr. 1, 2008—Jun. 30, 20086% 65 619 Jul. 1, 2008—Sep. 30, 2008 5% 63617 Oct. 1, 2008—Dec. 31, 20086% 65 619 Jan. 1, 2009—Mar. 31, 2009 5%15569 Apr. 1, 2009—Jun. 30, 20094%13 567 Jul. 1, 2009—Sep. 30, 20094%13 567 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT CORPORATE OVERPAYMENTS AND UNDERPAYMENTS OVERPAYMENTSUNDERPAYMENTS 1995–1 C.B.1995–1 C.B. RATE TABLEPGRATE TABLEPG Jan. 1, 1999 —Mar. 31, 1999 6%17 571 7%19 573 Apr. 1, 1999—Jun. 30, 19997%19 573 8%21 575 Jul. 1, 1999—Sep. 30, 19997%19 573 8%21 575 Oct. 1, 199 9—Dec. 31, 1999 7%19 573 8%21 575 Jan. 1, 2000—Mar. 31, 20007%676218%69623 Apr. 1, 2000—Jun. 30, 20008%696239%71 625 Jul. 1, 20 00—Sep. 30, 2000 8%696239%71 625 Oct. 1, 2000—Dec. 31, 20008%696239%71 625 Jan. 1, 2001—Mar. 31, 20018%21 575 9%23 577 Apr. 1, 2 001—Jun. 30, 2001 7%19 573 8%21 575 Jul. 1, 2001—Sep. 30, 20016%17 571 7%19 573 Oct. 1, 2001—Dec. 31, 20016%17 571 7%19 573 Jan. 1, 2 002—Mar. 31, 2002 5%15569 6%17 571 Apr. 1, 2002—Jun. 30, 2002 5%15569 6%17 571 Jul. 1, 2002—Sep. 30, 2002 5%15569 6%17 571 Oct. 1, 2002—Dec. 31, 2002 5%15569 6%17 571 Jan. 1, 2003—Mar. 31, 20034%13 5675%15569 Apr. 1, 2003—Jun. 30, 20034%13 5675%15569 Jul. 1 , 2003—Sep. 30, 2003 4%13 5675%15569 Oct. 1, 2003—Dec. 31, 20033%11 565 4%13 567 Jan. 1, 2004—Mar. 31, 20043% 59 6134%61 615 Apr. 1, 2004—Jun. 30, 2004 4%61 6155% 63617 Jul. 1, 2004—Sep. 30, 20043% 59 6134%61 615 Oct. 1, 2004—Dec. 31, 20044%61 6155% 63617 Jan. 1, 2005—Mar. 31, 2005 4%13 5675%15569 Apr. 1, 2005—Jun. 30, 20055%15569 6%17 571 Jul . 1, 2005—Sep. 30, 2005 5%15569 6%17 571 Oct. 1, 2005—Dec. 31, 2005 6%17 571 7%19 573 Jan. 1, 2006—Mar. 31, 20066%17 571 7%19 573 Apr. 1, 2006—Jun. 30, 20066%17 57 1 7%19 57 3 June 29, 200911142009–26 I.R.B. TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT – Continued CORPORATE OVERPAYMENTS AND UNDERPAYMENTS OVERPAYMENTSUNDERPAYMENTS 1995–1 C.B.1995–1 C.B. RATE TABLEPGRATE TABLEPG Jul. 1, 2006—Sep. 30, 20067%19 573 8%21 575 Oct. 1, 2006—Dec. 31, 20067%19 573 8%21 575 Jan. 1, 2007—Ma r. 31, 2007 7%19 573 8%21 575 Apr. 1, 2007—Jun. 30, 20077%19 573 8%21 575 Jul. 1, 2007—Sep. 30, 20077%19 573 8%21 575 Oct. 1, 2007—D ec. 31, 2007 7%19 573 8%21 575 Jan. 1, 2008—Mar. 31, 20086% 65 6197%67621 Apr. 1, 2008—Jun. 30, 2008 5% 636176% 65 619 Jul. 1, 2008— Sep. 30, 2008 4%61 6155% 63617 Oct. 1, 2008—Dec. 31, 2008 5% 636176% 65 619 Jan. 1, 2009—Mar. 31, 20094%13 5675%15569 Apr. 1, 2009— Jun. 30, 2009 3%11 565 4%13 567 Jul. 1, 2009—Sep. 30, 20093%11 565 4%13 567 TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 — PRESENT 1995–1 C.B. RATETABLEPG Jan. 1, 1991 —Mar. 31, 1991 13%31 585 Apr. 1, 1991—Jun. 30, 199112%29 583 Jul. 1, 1991—Sep. 30, 199112%29 583 Oct. 1, 199 1—Dec. 31, 1991 12%29 583 Jan. 1, 1992—Mar. 31, 199211% 75 629 Apr. 1, 1992—Jun. 30, 199210%73627 Jul. 1, 19 92—Sep. 30, 1992 10%73627 Oct. 1, 1992—Dec. 31, 19929%71 625 Jan. 1, 1993—Mar. 31, 19939%23 577 Apr. 1, 1 993—Jun. 30, 1993 9%23 577 Jul. 1, 1993—Sep. 30, 19939%23 577 Oct. 1, 1993—Dec. 31, 19939%23 577 Jan. 1, 1 994—Mar. 31, 1994 9%23 577 Apr. 1, 1994—Jun. 30, 19949%23 577 Jul. 1, 1994—Sep. 30, 199410% 25579 Oct. 1, 1994—Dec. 31, 1994 11%27 581 Jan. 1, 1995—Mar. 31, 1995 11%27 581 Apr. 1 , 1995—Jun. 30, 1995 12%29 583 Jul. 1, 1995—Sep. 30, 1995 11%27 581 Oct. 1, 1995—Dec. 31, 1995 11%27 581 Jan. 1, 1996—Mar. 31, 199611% 75 629 Apr. 1, 1996—Jun. 30, 1996 10%73627 Jul. 1, 1996—Sep. 30, 199611% 75 629 Oct. 1, 1996—Dec. 31, 199611% 75 629 Jan . 1, 1997—Mar. 31, 1997 11%27 581 Apr. 1, 1997—Jun. 30, 199711%27 581 Jul. 1, 1997—Sep. 30, 199711%27 581 Oct . 1, 1997—Dec. 31, 1997 11%27 581 Jan. 1, 1998—Mar. 31, 199811%27 581 Apr. 1, 1998—Jun. 30, 199810% 2557 9 Ju l. 1, 1998—Sep. 30, 1998 10% 25579 Oct. 1, 1998—Dec. 31, 199810% 25579 2009–26 I.R.B.1115June 29, 2009 TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 — PRESENT – Continued 1995–1 C.B. RATETABLEPG Jan. 1, 1999—Mar. 31, 19999%23 577 Apr. 1, 1999—Jun. 30, 199910% 25579 Jul. 1, 1999—Sep. 30, 199910% 25579 Oct. 1, 1999—Dec. 31, 199910% 25579 Jan. 1, 2000—Mar. 31, 200010%73627 Apr. 1, 2000—Jun. 30, 200011% 75 629 Jul. 1, 2000—Sep. 30, 200011% 75 629 Oct. 1, 2000—Dec. 31, 200011% 75 629 Jan. 1, 2001—Mar. 31, 200111%27 581 Apr. 1, 2001—Jun. 30, 200110% 25579 Jul. 1, 2001—Sep. 30, 20019%23 577 Oct. 1, 2001—Dec. 31, 20019%23 577 Jan. 1, 2002—Mar. 31, 20028%21 575 Apr. 1, 2002—Jun. 30, 20028%21 575 Jul. 1, 2002—Sep. 30, 20028%21 575 Oct. 1, 2002—Dec. 30, 20028%21 575 Jan. 1, 2003—Mar. 31, 20037%19 573 Apr. 1, 2003—Jun. 30, 20037%19 573 Jul. 1, 2003—Sep. 30, 20037%19 573 Oct. 1, 2003—Dec. 31, 20036%17 571 Jan. 1, 2004—Mar. 31, 20046% 65 619 Apr. 1, 2004—Jun. 30, 20047%67621 Jul. 1, 2004—Sep. 30, 20046% 65 619 Oct. 1, 2004—Dec. 31, 20047%67621 Jan. 1, 2005—Mar. 31, 2005 7%19 573 Apr. 1, 2005—Jun. 30, 2005 8%21 575 Jul. 1, 2005—Sep. 30, 2005 8%21 575 Oct. 1, 2005—Dec. 31, 2005 9%23 577 Jan. 1, 2006—Mar. 31, 20069%23 577 Apr. 1, 2006—Jun. 30, 20069%23 577 Jul. 1, 2006—Sep. 30, 200610% 25579 Oct. 1, 2006—Dec. 31, 200610% 25579 Jan. 1, 2007—Mar. 31, 200710% 25579 Apr. 1, 2007—Jun. 30, 200710% 25579 Jul. 1, 2007—Sep. 30, 200710% 25579 Oct. 1, 2007—Dec. 31, 200710% 25579 Jan. 1, 2008—Mar. 31, 20089%71 625 Apr. 1, 2008—Jun. 30, 20088%69623 Jul. 1, 2008—Sep. 30, 20087%67621 Oct. 1, 2008—Dec. 31, 20088%69623 Jan. 1, 2009—Mar. 31, 20097%19 573 Apr. 1, 2009—Jun. 30, 20096%17 571 Jul. 1, 2009—Sep. 30, 20096%17 571 TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000 F ROM JANUARY 1, 1995 — PRESENT 1995–1 C.B. RATETABLEPG Jan. 1, 1995—Mar. 31, 19956.5% 18 572 Apr. 1, 1995—Jun. 30, 19957.5% 20 574 Jul. 1, 1995—Sep. 30, 19956.5% 18 572 June 29, 200911162009–26 I.R.B. TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS E XCEEDING $10,000 FROM JANUARY 1, 1995 — PRESENT – Continued 1995–1 C.B. RATETABLEPG Oct. 1, 1995—Dec. 31, 19956.5% 18 572 Jan. 1, 1996—Mar. 31, 1996 6.5% 66620 Apr. 1, 1996—Jun. 30, 1996 5.5% 64618 Jul. 1, 1996—Sep. 30, 1996 6.5% 66620 Oct. 1, 1996—Dec. 31, 1996 6.5% 66620 Jan. 1, 1997—Mar. 31, 1997 6.5% 18 572 Apr. 1, 1997—Jun. 30, 1997 6.5% 18 572 Jul. 1, 1997—Sep. 30, 1997 6.5% 18 572 Oct. 1, 1997—Dec. 31, 1997 6.5% 18 572 Jan. 1, 1998—Mar. 31, 1998 6.5% 18 572 Apr. 1, 1998—Jun. 30, 1998 5.5% 16 570 Jul. 1, 1998—Sep. 30, 1998 5.5% 16 570 Oct. 1, 1998—Dec. 31, 1998 5.5% 16 570 Jan. 1, 1999—Mar. 31, 1999 4.5% 14 568 Apr. 1, 1999—Jun. 30, 1999 5.5% 16 570 Jul. 1, 1999—Sep. 30, 1999 5.5% 16 570 Oct. 1, 1999—Dec. 31, 1999 5.5% 16 570 Jan. 1, 2000—Mar. 31, 2000 5.5% 64618 Apr. 1, 2000—Jun. 30, 2000 6.5% 66620 Jul. 1, 2000—Sep. 30, 2000 6.5% 66620 Oct. 1, 2000—Dec. 31, 2000 6.5% 66620 Jan. 1, 2001—Mar. 31, 2001 6.5% 18 572 Apr. 1, 2001—Jun. 30, 2001 5.5% 16 570 Jul. 1, 2001—Sep. 30, 2001 4.5% 14 568 Oct. 1, 2001—Dec. 31, 2001 4.5% 14 568 Jan. 1, 2002—Mar. 31, 2002 3.5% 12 566 Apr. 1, 2002—Jun. 30, 2002 3.5% 12 566 Jul. 1, 2002—Sep. 30, 2002 3.5% 12 566 Oct. 1, 2002—Dec. 31, 2002 3.5% 12 566 Jan. 1, 2003—Mar. 31, 2003 2.5% 10 564 Apr. 1, 2003—Jun. 30, 2003 2.5% 10 564 Jul. 1, 2003—Sep. 30, 2003 2.5% 10 564 Oct. 1, 2003—Dec. 31, 2003 1.5% 8 562 Jan. 1, 2004—Mar. 31, 2004 1.5%56 610 Apr. 1, 2004—Jun. 30, 2004 2.5%58 612 Jul. 1, 2004—Sep. 30, 2004 1.5%56 610 Oct. 1, 2004—Dec. 31, 2004 2.5%58 612 Jan. 1, 2005—Mar. 31, 20052.5% 10 564 Apr. 1, 2005—Jun. 30, 20053.5% 12 566 Jul. 1, 2005—Sep. 30, 20053.5% 12 566 Oct. 1, 2005—Dec. 31, 20054.5% 14 568 Jan. 1, 2006—Mar. 31, 2006 4.5% 14 568 Apr. 1, 2006—Jun. 30, 2006 4.5% 14 568 Jul. 1, 2006—Sep. 30, 2006 5.5% 16 570 Oct. 1, 2006—Dec. 31, 2006 5.5% 16 570 Jan. 1, 2007—Mar. 31, 2007 5.5% 16 570 Apr. 1, 2007—Jun. 30, 2007 5.5% 16 570 Jul. 1, 2007—Sep. 30, 2007 5.5% 16 570 Oct. 1, 2007—Dec. 31, 2007 5.5% 16 570 Jan. 1, 2008—Mar. 31, 2008 4.5% 62616 Apr. 1, 2008—Jun. 30, 2008 3.5% 60614 Jul. 1, 2008—Sep. 30, 2008 2.5%58 612 Oct. 1, 2008—Dec. 31, 2008 3.5% 60614 Jan. 1, 2009—Mar. 31, 2009 2.5% 10 564 Apr. 1, 2009—Jun. 30, 2009 1.5% 8 562 Jul. 1, 2009—Sep. 30, 2009 1.5% 8 562 2009–26 I.R.B.1117June 29, 2009 Part III. Administrative, Procedural, and Miscellaneous Recovery Zone Bond Volume Cap Allocations Notice 2009–50 SECTION 1. PURPOSE This notice provides guidance regard- ing the maximum face amount of recovery zone economic development bonds (“Re- covery Zone Economic Development Bonds”) and recovery zone facility bonds (“Recovery Zone Facility Bonds”) (to- gether, “Recovery Zone Bonds”), that may be issued by each State and counties and large municipalities within each State be- fore January 1, 2011 under §§ 1400U–2 and 1400U–3, respectively, of the Inter- nal Revenue Code (“Code”), as provided in § 1400U–1 of the Code. As appli- cable to §§ 1400U–1 through 1400U–3, § 103(c)(2) provides that the term “State” includes the District of Columbia and any possession of the United States. This no- tice also provides certain interim guidance for Recovery Zone Bonds. In general, Re- covery Zone Bonds provide tax incentives for State and local governmental borrow- ing at lower borrowing costs to promote job creation and economic recovery that is targeted to areas particularly affected by employment declines. SECTION 2. BACKGROUND .01 INTRODUCTION Section 1401 of Title I of Division B of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111–5, 123 Stat. 115 (2009) (“ARRA”), added §§ 1400U–1 through 1400U–3 to the Code authorizing State and local governments to issue Re- covery Zone Bonds. Section 1400U–1 im- poses a national bond volume limitation (“volume cap”) of $10 billion for Recov- ery Zone Economic Development Bonds and $15 billion for Recovery Zone Facil- ity Bonds. The volume cap for Recov- ery Zone Bonds is allocated among the States and counties and large municipali- ties within the States based on relative de- clines in employment in 2008. In general, Recovery Zone Economic Development Bonds may be used to fi- nance certain “qualified economic devel- opment purposes” and Recovery Zone Facility Bonds may be used to finance certain “recovery zone property,” both as described further herein, generally for use within designated “recovery zones,” as described below. Section 1400U–1(b) provides that, for purposes of §§ 1400U–1 through 1400U–3, the term “recovery zone” means: (1) any area designated by the issuer as having significant poverty, unemployment, rate of home foreclosures, or general distress; (2) any area designated by the issuer as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990; and (3) any area for which a designation as an empowerment zone or renewal community is in effect as of the effective date of ARRA, which effective date is February 17, 2009. .02 BACKGROUND ON BUILD AMERICA BONDS Section 1531 of ARRA added § 54AA to the Code, authorizing State and local governments, at their option, to issue two general types of Build America Bonds (“Build America Bonds”) as taxable gov- ernmental bonds with Federal subsidies for a portion of their borrowing costs. Sec- tion 54AA(d) of the Code defines the term “Build America Bond” generally to mean any taxable State or local governmental bond (excluding a private activity bond under § 141) that meets the following re- quirements: (1) the interest on such bond would (but for § 54AA) be excludable from gross income under § 103; (2) the bond is issued before January 1, 2011; and (3) the issuer makes an irrevocable elec- tion to have § 54AA apply. The Federal subsidies for a portion of the borrowing costs on Build America Bonds take the form of either tax credits provided to hold- ers of the bonds or refundable tax credits paid to State and local governmental is- suers of the bonds. Build America Bonds have different levels of Federal subsidies and different program requirements with respect to uses of proceeds depending on the particular type of Build America Bond. The first type of Build America Bond provides a Federal subsidy through Fed- eral tax credits to investors in the bonds in an amount equal to 35 percent of the to- tal coupon interest payable by the issuer on taxable governmental bonds (net of the tax credit), which represents a Federal sub- sidy to the State or local governmental is- suer equal to approximately 25 percent of the total return to the investor (including the coupon interest paid by the issuer and the tax credit). This type of Build Amer- icaBondwillbereferredtointhisnotice as “Build America Bonds (Tax Credit).” This type of Build America Bond gener- ally may be used to finance any govern- mental purpose for which tax-exempt gov- ernmental bonds (excluding private activ- ity bonds under § 141) could be issued under § 103 (“tax-exempt governmental bonds”) and must comply with all require- ments applicable to the issuance of tax-ex- empt governmental bonds. The second type of Build America Bond provides a Federal subsidy through a refundable tax credit paid to State or local governmental issuers by the Treasury De- partment and the Internal Revenue Service (“IRS”) in an amount equal to 35 percent of the total coupon interest payable to investors in these taxable bonds. This type of Build America Bond will be referred to in this notice as “Build America Bonds (Direct Payment).” This type of Build America Bond generally may be used to finance only capital expenditures and certain issuance costs and reasonably required reserve funds. Recovery Zone Economic Develop- ment Bonds under § 1400U–2 represent a third type of Build America Bond. Recov- ery Zone Economic Development Bonds are comparable to Build America Bonds (Direct Payment), except that they pro- vide for a deeper Federal subsidy through a refundable tax credit paid to State or local governmental issuers in an amount equal to 45 percent (rather than 35 per- cent) of the total coupon interest payable to investors in these taxable bonds and they have different program requirements regarding eligible uses of proceeds for qualified economic development purposes within recovery zones, as described fur- ther herein. For additional information regard- ing Build America Bonds generally, see § 54AA and the initial implementation guidance on Build America Bonds set June 29, 200911182009–26 I.R.B. forth in Notice 2009–26, 2009–16 I.R.B 833 (April 20, 2009). SECTION3. RECOVERYZONE ECONOMIC DEVELOPMENT BONDS .01 RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS TREATED AS QUALIFIED BONDS UNDER § 6431 Section 1400U–2(a) provides that a Recovery Zone Economic Development Bond shall be treated as a “qualified bond” for purposes of § 6431 (relating to the refundable credit for qualified bonds al- lowed and payable to the issuer in the case of Build America Bonds (Direct Payment)). Section 1400U–2(a) further provides that, for purposes of § 6431(b) (relating to the amount of the refundable credit allowed and payable to the issuer of qualified bonds), the amount of the refundable credit shall be 45 percent of the coupon interest payable on the bonds rather than 35 percent of such interest as is the case with Build America Bonds (Di- rect Payment). In determining the amount of coupon interest payable on the bonds for purposes of calculating the refund- able credit, original issue discount is not treated as a payment of interest.SeeH.R. Conf. Rep. 111–16, 111 th Cong., 1 st Sess. (February 12, 2009). .02 DEFINITION OF RECOVERY ZONE ECONOMIC DEVELOPMENT BOND Section 1400U–2(b)(1) defines the term “Recovery Zone Economic Development Bond” to mean any bond that is issued as part of an issue that meets the follow- ing requirements: (1) the bond is a Build America Bond (as defined in § 54AA(d)); (2) the bond is issued before January 1, 2011; (3) 100 percent of the excess of (i) the available project proceeds (as defined in § 54A to mean sale proceeds of such issue less not more than 2 percent of such proceeds used to pay issuance costs, plus investment proceeds thereon), over (ii) the amounts in a reasonably required reserve (within the meaning of § 150(a)(3)) with respect to such issue, are to be used for one or more qualified economic development purposes, and (4) the issuer designates such bond for purposes of § 1400U–2. .03 DEFINITION OF QUALIFIED ECONOMIC DEVELOPMENT PURPOSE Section 1400U–2(c) defines the term “qualified economic development pur- pose” for purposes of § 1400U–2 to mean any expenditures for purposes of pro- moting development or other economic activity in a recovery zone, including (1) capital expenditures paid or incurred with respect to property located in the recovery zone, (2) expenditures for public infrastructure and construction of public facilities, and (3) expenditures for job training and educational programs. This broad definition of qualified economic development purpose includes capital ex- penditures (as defined in § 1.150–1(b) of the Income Tax Regulations) and working capital expenditures to promote devel- opment or other economic activity in a recovery zone. For this purpose, an eli- gible financing of qualified expenditures includes a reimbursement of those ex- penditures under the reimbursement rules contained in § 1.150–2. By contrast, Recovery Zone Economic Development Bonds generally may not be issued to refi- nance expenditures in “refunding issues” (as defined in § 1.150–1). Further, for this purpose, Recovery Zone Economic Development Bonds may be used to re- imburse otherwise-eligible expenditures under § 1.150–2 that were paid or in- curred after the effective date of ARRA and that were financed originally with temporary short-term financing issued af- ter the effective date of ARRA, and such reimbursement will not be treated as a refunding issue under §§ 1.150–1(d) or 1.150–2(g). .04 CERTAIN OTHER APPLICABLE RULES Section 6431(c) provides that for pur- poses of applying the arbitrage investment restrictions under § 148, the yield on a qualified bond (including, for this purpose, a Recovery Zone Economic Development Bond), shall be reduced by the refund- able credit allowed under § 6431. Sec- tion 6431(d) provides that, for purposes of § 6431, “interest payment date” means each date on which interest is payable by the issuer under the terms of the bond. Section 54AA(d)(2)(A) provides that, for purposes of the restrictions against Fed- eral guarantees of tax-exempt bonds un- der § 149(b), a Build America Bond (in- cluding, for this purpose, a Recovery Zone Economic Development Bond) shall not be treated as federally guaranteed by rea- son of the refundable credit allowed un- der § 6431. Section 54AA(d)(2)(C) pro- vides that a bond (including, for this pur- pose, a Recovery Zone Economic Devel- opment Bond) shall not be treated as a Build America Bond under § 54AA(d)(1) if the issue price has more than ade min- imisamount (determined under rules sim- ilar to the rules of § 1273(a)(3)) of pre- mium over the stated principal amount of the bond. SECTION 4. RECOVERY ZONE FACILITY BONDS .01 RECOVERY ZONE FACILITY BONDS TREATED AS EXEMPT FACILITY BONDS Section 103(a) provides that, except as otherwise provided in § 103(b), interest on State or local bonds is excludable from gross income for Federal income tax pur- poses. Under § 103(b), interest on a State and local bond that is a “private activ- ity bond” under § 141(a) generally is not excludable from gross income unless the bond meets the requirements for a quali- fied private activity bond under § 141(e). Section 141(e) provides that an “exempt facility bond” under § 142 is one type of qualified private activity bond that may be issued with interest thereon excludable from gross income under § 103(a). Sec- tion 1400U–3(a) provides that, for pur- poses of §§ 141 through 150, the term “ex- empt facility bond” includes any Recovery Zone Facility Bond. Section 1400U–3(b) defines the term “Recovery Zone Facility Bond” to mean any bond issued as part of an issue if: (A) 95 percent or more of the net proceeds (as defined in § 150(a)(3)) of such issue are to be used for recov- ery zone property; (B) such bond is issued before January 1, 2011; and (C) the is- suer designates such bond for purposes of § 1400U–3. .02 RECOVERY ZONE PROPERTY Section 1400U–3(c)(1) defines the term “recovery zone property” to mean any property to which § 168 (relating to the 2009–26 I.R.B.1119June 29, 2009 accelerated cost recovery system) applies (or would apply but for § 179 (relating to electing to expense certain depreciable business assets)) if: (A) such property was constructed, reconstructed, renovated, or acquired by purchase (as defined in § 179(d)(2)) by the taxpayer after the date on which the designation of the recovery zone took effect; (B) the original use of which in the recovery zone commences with the taxpayer; and (C) substantially all of the use of which is in the recovery zone and is in the active conduct of a qualified business (as defined in § 1400U–3(c)(2)) by the taxpayer in the recovery zone. For purposes of § 1400U–3(c)(1), which provides that the term “recovery zone property” means, in part, any property to which § 168 applies (or would apply but for § 179), any property of a character generally subject to the allowance for de- preciation under § 168 (or that would be generally subject to such allowance but for § 179) will be treated as “recovery zone property,” without regard to whether the particular property is owned by any State or local governmental entity that is not subject to Federal income taxation, pro- vided that such property otherwise meets the requirements under § 1400U–3(c)(1). .03 USE OF RECOVERY ZONE PROPERTY IN QUALIFIED BUSINESSES Section 1400U–3(c)(1)(C) requires that substantially all of the use of recovery zone property involve the active conduct of a qualified business (as defined in § 1400U–3(c)(2)) by the taxpayer in the recovery zone. Section 1400U–3(c)(2) defines the term “qualified business” to mean any trade or business except that (A) the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the prop- erty is not residential rental property (as defined in § 168(e)(2)), and (B) such term shall not include any trade or business consisting of the operation of any facility described in § 144(c)(6)(B) (relating to the prohibition on the use of proceeds of a qualified redevelopment bond for any private or commercial golf course, country club, massage parlor, hot tub facility, sun- tan facility, racetrack or other facility used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises). .04 OTHER APPLICABLE RULES Section 1400U–3(c)(3) provides that rules similar to rules of § 1397D(a)(2) and (b) (relating to substantial renovations and sale-leasebacks) shall apply for purposes of § 1400U–3(c). Section 1400U–3(d) provides that § 146 (relatingtotheprivate activity bond volume cap) and § 147(d) (relating to limitations on acquisition of existing property) shall not apply to any Recovery Zone Facility Bond. Except as otherwise provided in this notice or in fu- ture administrative or regulatory guidance, rules applicable to exempt facility bonds under § 142 apply to Recovery Zone Fa- cility Bonds. SECTION 5. INTERIM GUIDANCE AND RELIANCE .01 IN GENERAL Pending the promulgation and effective date of future administrative or regulatory guidance, taxpayers may rely on the in- terim guidance provided in this notice. .02 REASONABLY REQUIRED RESERVE OR REPLACEMENT FUND Section 1400U–2(b)(1)(A) requires that 100 percent of the excess of (i) the available project proceeds (as defined in § 54A to mean sale proceeds of such is- sue less not more than 2 percent of such proceeds used to pay issuance costs, plus investment proceeds thereon), over (ii) the amounts in a reasonable required re- serve (within the meaning of § 150(a)(3)) for an issue of Recovery Zone Economic Development Bonds be used for qualified economic development purposes. Section 1400U–3(b)(1)(a) requires that 95 percent or more of the “net proceeds” (as defined in § 150(a)(3)) of an issue of Recovery Zone Facility Bonds be used for recovery zone property. Section 150(a)(3) defines the term “net proceeds” to mean, with respect to any issue, the proceeds of such issue reduced by amounts in a “reasonably required reserve or replacement fund.” For these purposes, § 148(d) provides rules for a reasonably required reserve or replace- ment fund. Section 148(d)(1) generally provides that a bond shall not be treated as an ar- bitrage bond solely by reason of the fact that an amount of the proceeds of the is- sue of which such bond is a part may be invested in higher yielding investments which are part of a reasonably required reserve or replacement fund. The amount of such proceeds shall not exceed 10 per- cent of the proceeds of such issue unless the issuer establishes to the satisfaction of the Secretary that a higher amount is necessary. Section 148(d)(2) provides that a bond issued as part of an issue shall be treated as an arbitrage bond if the amount of the proceeds from the sale of such issue which is part of any reserve or replacement fund exceeds 10 percent of the proceeds of the issue (or such higher amount which the issuer establishes is necessary to the satisfaction of the Secretary). Section 1.148–2(f) of the Income Tax Regulations provides additional rules regarding rea- sonably required reserve or replacement funds. .03 INFORMATION REPORTING FOR RECOVERY ZONE BONDS (i)Recovery Zone Economic Develop- ment Bonds.For information relating to information reporting and direct payments of refundable credits to issuers of Recov- ery Zone Economic Development Bonds, rules similar to those applicable for infor- mation reporting and payment of credit to issuers of qualified bonds under § 6431 shall apply.SeeNotice 2009–26, 2009–16 I.R.B. 833 (April 20, 2009). (ii)Recovery Zone Facility Bonds.The information reporting requirement for tax-exempt bonds under § 149(e) applies to Recovery Zone Facility Bonds under § 1400U–3(a). Information reporting re- turns for Recovery Zone Facility Bonds arerequiredtobesubmittedatthesame time and in the same manner as those re- quired under § 149(e) for exempt facility bonds on such forms as shall be prescribed by the IRS for such purpose. Pending further guidance from the IRS regarding the applicable forms to be used for such information reporting for Recovery Zone Facility Bonds, in the case of an issue of Recovery Zone Facility Bonds, the issuer must submit to the IRS an information return on Form 8038,Information Return for Tax-Exempt Private Activity Bond Is- June 29, 200911202009–26 I.R.B. sues, at the same time and in the same manner as required under § 149(e), with modifications as described below. Issuers of Recovery Zone Facility Bonds should complete Part II of Form 8038 by check- ing the box on Line 11q (Other), writing “Recovery Zone Facility Bonds” in the space provided for the bond description, and entering the issue price of the Re- covery Zone Facility Bonds in the Issue Price column. For purposes of this notice, the term “issue” has the meaning used for tax-exempt bond purposes in § 1.150–1(c). .04 ELIGIBLE ISSUERS IN GENERAL AND ALLOCATIONS OF VOLUME CAP TO ULTIMATE BENEFICIARIES Eligible issuers of Recovery Zone Bonds include States, political subdivi- sions as defined for purposes of § 103, and entities empowered to issue bonds on behalf of any such entity under rules similar to those for determining whether a bond issued on behalf of a State or polit- ical subdivision constitutes an obligation of that State or political subdivision for purposes of § 103 and § 1.103–1(b) of the Income Tax Regulations. Further, eligible issuers include otherwise-eligible issuers in conduit financing issues (as defined in § 1.150–1(b)). An eligible issuer may issue Recovery Zone Bonds based on a volume cap allocation received by the eli- gible issuer itself or by a conduit borrower or other ultimate beneficiary of the issue of the bonds. In all events, the eligible costs for qualified economic development purposes or recovery zone property, as applicable, financed with the proceeds of an issue of Recovery Zone Bonds under §§ 1400U–2 or 1400U–3, respectively, must relate to any such purpose or prop- erty that is located within, or attributable to, both the jurisdiction of the issuer of the bonds and the jurisdiction of the entity authorized to allocate volume cap to an issue of bonds for the financing of such purpose or property. Entities authorized to allocate volume cap to ultimate beneficiaries consist of States (with respect to allocations waived or deemed waived by any county or large municipality), counties, and large munici- palities (as defined in § 1400U–1(a)(3)(B)) that receive volume cap allocations under § 1400U–1(a)(3)(A). Such States, coun- ties, and large municipalities may use such volume cap themselves for eligible costs or may allocate such volume cap received to ultimate beneficiaries in any reasonable manner as they shall determine in good faith in their discretion for use for eligible costs for qualified economic development purposes or recovery zone property, as ap- plicable. In the event that a county or large municipality that receives an allocation of volume cap under § 1400U–1(a)(3)(A) of Recovery Zone Economic Develop- ment Bonds or Recovery Zone Facility Bonds does not possess substantial taxing, eminent domain,andpolice powers, any entity the jurisdiction of which includes such county or large municipality may issue bonds and designate such bonds as Recovery Zone Economic Development Bonds or Recovery Zone Facility Bonds, as applicable, on behalf of, and for the benefit of, such county or municipality, subject to the applicable volume cap lim- itations for those Recovery Zone Bonds allocated to such county or large munic- ipality. In such case, the proceeds of an issue of Recovery Zone Economic Devel- opment Bonds or Recovery Zone Facility Bonds under §§ 1400U–2 or 1400U–3, respectively, must be allocated to eligible costs for qualified economic development purposes or recovery zone property, as applicable, that is located within, or at- tributable to, both the jurisdiction of the issuer of the bonds and the jurisdiction of the county or large municipality that received the volume cap allocation under § 1400U–1(a)(3)(A). Thus, for exam- ple, a county or large municipality that received a volume cap allocation under § 1400U–1(a)(3)(A) may issue bonds and designate them as Recovery Zone Eco- nomic Development Bonds or Recovery Zone Facility Bonds, as applicable, for use of that volume cap by an ultimate ben- eficiary (including such county or large municipality itself or another entity) or another eligible issuer may issue bonds and designate themas Recovery Zone Economic Development Bonds or Recov- ery Zone Facility Bonds, as applicable, for use of that volume cap by an ultimate beneficiary (including such county or mu- nicipality or another entity), based on an allocation by such county or large munic- ipality of that volume cap to an ultimate beneficiary. In all events, the proceeds of the issue must be used to finance eligible costs for qualified economic development purposes or recovery zone property, as applicable, that is located within, or at- tributable to, both the jurisdiction of the issuer of the bonds and the jurisdiction of the county or large municipality autho- rized to allocate volume cap to an ultimate beneficiary of the issue of Recovery Zone Bonds for the financing of those purposes or property. .05 WAIVERS OF VOLUME CAP ALLOCATIONS Section 1400U–1(a)(3)(A) provides that a county or large municipality may waive any portion of a volume cap alloca- tion received for Recovery Zone Bonds. Upon any such waiver, the State in which such county or large municipality is lo- cated shall be authorized to reallocate the waived volume cap in any reasonable manner as it shall determine in good faith in its discretion. .06 DESIGNATIONS OF RECOVERY ZONES As further described in Section 2.01 of this notice, § 1400U–1(b) requires, in part, that issuers “designate” eligible recovery zones based on certain specified criteria. For this purpose, any State, county, or large municipality that receives a volume cap allocation for Recovery Zone Bonds may make these designations of recovery zones in any reasonable manner as it shall determine in good faith in its discretion. SECTION 6. ALLOCATIONS OF RECOVERY ZONE BOND VOLUME CAP .01 VOLUME CAP DESIGNATIONS IN GENERAL Sections1400U–2(b)(2)and 1400U–3(b)(2) provide generally that the maximum face amount of the applicable type of Recovery Zone Bonds designated for issuance by an issuer cannot exceed the amounts of volume capfor the applicable Recovery Zone Bonds allocated to such issuer under § 1400U–1. For this purpose, these designations, including associated determinations of qualified economic development purposes, may be made by an issuer in any reasonable manner as it shall determine in good faith in its discretion, taking into account the special 2009–26 I.R.B.1121June 29, 2009 rules for eligible issuers under Section 5.04 of this notice. .02 VOLUME CAP ALLOCATIONS IN GENERAL Section 1400U–1(a)(1)(A) provides that, subject to § 1400U–1(a)(1)(B) (re- lating to minimum allocations), generally, the Secretary shall allocate the $10 billion national volume cap for Recovery Zone Economic Development Bonds and the $15 billion national volume cap for Re- covery Zone Facility Bonds among the States in the proportion that each State’s 2008 State employment decline bears to the aggregate of the 2008 State employ- ment declines for all of the States. Section 1400U–1(a)(1)(B) provides that the Sec- retary shall adjust the allocations under § 1400U–1(a)(1)(A) for any calendar year for each State to the extent necessary to ensure that no State receives less than 0.9 percent of the national volume cap for Recovery Zone Economic Development Bonds and 0.9 percent of the national volume cap for Recovery Zone Facility Bonds. Section 1400U–1(a)(2) provides that for purposes of § 1400U–1(a), the term “2008 State employment decline” means, with respect to any State, the excess (if any) of (A) the number of individuals employed in such State determined for December 2007, over (B) the number of individuals employed in such State determined for December 2008. The volume cap allocations provided pur- suant to this notice are based on Local Area Unemployment Statistics (“LAUS”) data for December 2007 and December 2008 released by the United States Bu- reau of Labor Statistics.See generally http://www.bls.gov/lau/home.htm. Section 1400U–1(a)(3)(A) provides generally that each State with respect to which an allocation is made under 1400U–1(a)(1) is required, without discre- tion, to reallocate such allocation among the counties and large municipalities in such State in the proportion that each county’s or municipality’s 2008 employ- ment decline bears to the aggregate of the 2008 employment declines for all the counties and municipalities in such State. For purposes of § 1400U–1(a)(3)(A), the term “large municipality” means a municipality with a population of more than 100,000. For purposes of determin- ing the local employment decline under § 1400U–1(a)(3), the employment de- cline of any county or large municipality is determined in the same manner as the determination of the State employment decline under 1400U–1(a)(2), except that in the case of a municipality any portion of which is in a county, such portion is treated as part of such municipality and not as part of such county. .03 STATE ALLOCATIONS OF RECOVERY ZONE BOND VOLUME CAP Pursuant to § 1400U–1(a), the $10 billion national volume cap for Recov- ery Zone Economic Development Bonds and the $15 billion national volume cap for Recovery Zone Facility Bonds under §§ 1400U–2 and 1400U–3, respectively, are allocated among the States as follows: StateRecovery Zone Economic Development Bond Allocations (in dollars) Recovery Zone Facility Bond Allocations (in dollars) Alabama244,676,000367,014,000 Alaska90,000,000 135,000,000 Arizona90,000,000 135,000,000 Arkansas90,000,000 135,000,000 California 806,225,000 1,209,338,000 Colorado99,018,000 148,527,000 Connecticut90,000,000 135,000,000 Delaware90,000,000 135,000,000 District of Columbia90,000,000 135,000,000 Florida 538,485,000 807,727,000 Georgia 355,785,000533,677,000 Hawaii90,000,000 135,000,000 Idaho90,000,000 135,000,000 Illinois666,972,000 1,000,457,000 Indiana313,081,000469,621,000 Iowa90,000,000 135,000,000 Kansas90,000,000 135,000,000 Kentucky97,120,000 145,681,000 Louisiana90,000,000 135,000,000 Maine90,000,000 135,000,000 Maryland208,860,000313,291,000 Massachusetts222,676,000334,013,000 Michigan 773,050,0001,159,575,000 Minnesota 132,154,000 198,231,000 Mississippi90,000,000 135,000,000 Missouri229,143,000 343,715,000 June 29, 200911222009–26 I.R.B. StateRecovery Zone Economic Development Bond Allocations (in dollars) Recovery Zone Facility Bond Allocations (in dollars) Montana90,000,000 135,000,000 Nebraska90,000,000 135,000,000 Nevada90,000,000 135,000,000 New Hampshire90,000,000 135,000,000 New Jersey 251,104,000376,655,000 New Mexico90,000,000 135,000,000 New York370,098,000 555,147,000 North Caroline 418,154,000 627,231,000 North Dakota90,000,000 135,000,000 Ohio422,637,000 633,955,000 Oklahoma90,000,000 135,000,000 Oregon 103,450,000155,175,000 Pennsylvania 154,008,000 231,012,000 Rhode Island100,882,000 151,322,000 South Carolina 115,041,000172,562,000 South Dakota90,000,000 135,000,000 Tennessee231,417,000347,126,000 Texas90,000,000 135,000,000 Utah90,000,000 135,000,000 Vermont90,000,000 135,000,000 Virginia104,396,000 156,595,000 Washington90,000,000 135,000,000 West Virginia90,000,000 135,000,000 Wisconsin 158,811,000 238,217,000 Wyoming90,000,000 135,000,000 American Samoa90,000,000 135,000,000 Guam90,000,000 135,000,000 Northern Marianas90,000,000 135,000,000 Puerto Rico 92,757,000 139,136,000 US Virgin Islands90,000,000 135,000,000 Total10,000,000,000 15,000,000,000 .04 LOCAL SUBALLOCATIONS OF RECOVERY ZONE BOND VOLUME CAP AMONG COUNTIES AND LARGE MUNICIPALITIES The Treasury Department and the IRS recognize that the required local suballo- cations of the national volume cap for Re- covery Zone Bonds among counties and large municipalities impose administrative burdens for the States and involve manda- tory local suballocations without State dis- cretion. Accordingly, the Treasury De- partment and the IRS undertook to deter- mine these required local suballocations. For purposes of these local suballocations among counties and large municipalities, certain county-equivalent entities (includ- ing independent cities that are not oth- erwise located within counties, parishes, boroughs, and similar entities) are treated as counties in the same manner that the Bureau of Labor Statistics treats such en- tities as county-equivalent entities in its employment data. This undertaking to provide local suballocations is intended to facilitate prompt availability of Recovery Zone Bonds as a source for State and lo- cal governmental borrowing at lower bor- rowingcoststopromotejobcreationand economic recovery in areas particularly af- fected by employment declines. Pursuant to § 1400U–1(a)(3), the State volume caps of the $10 billion national volume cap for Recovery Zone Economic Development Bonds and the $15 billion national volume cap for Recovery Zone Facility Bonds under §§ 1400U–2 and 1400U–3, respectively, are reallocated lo- cally among the counties and large munic- ipalities within the States (except that no such local reallocations are being provided for the Possessions of the United States (see Section 6.05 of this notice below)) in a document regarding the Recovery Zone Bond volume cap allocations being posted on the IRS’s website at the following web address:http://www.irs.gov/taxexempt- bond/index.htmlunder the heading in the index entitled “IRS Releases Guidance on ARRA Bond Provisions,” to be available on the same date that this notice is released publicly. Stated differently, these local suballocations will be accessible by going to the IRS website athttp://ww.irs.gov, then clicking on the heading “Tax-exempt Bond Community” in the top right cor- ner, then clicking on the heading in the index entitled “IRS Releases Guidance on ARRA Bond Provisions,” and then clicking on the subheading regarding the Recovery Zone Bondvolume cap alloca- tions, starting on the same date that this notice is released publicly. 2009–26 I.R.B.1123June 29, 2009 .05 SPECIAL RULES FOR VOLUME CAP ALLOCATIONS RECEIVED BY THE POSSESSIONS In recognition of the disparate local governmental organizational structures and disparate availability of employment data for the Possessions of the United States, the Possessions may allocate lo- cally, reallocate locally, or use directly their respective State allocations of vol- ume cap for Recovery Zone Bonds in any reasonable manner as they may determine in good faith in their discretion. SECTION 7. EFFECTIVE DATE OF VOLUME CAP ALLOCATIONS The allocations of national volume cap for Recovery Zone Bonds in Section 6 of this notice are effective for bonds issued on or after February 17, 2009. SECTION 8. DRAFTING INFORMATION The principal authors of this notice are Zoran Stojanovic and Timothy L. Jones of the Office of Associate Chief Counsel (Financial Institutions and Products). For further information regarding this notice, contact Mr. Stojanovic or Mr. Jones at (202) 622–3980 (not a toll-free call). Qualified Plug-in Electric Vehicle Credit Notice 2009–54 Section 1. PURPOSE This notice sets forth interim guidance, pending the issuance of regulations, relat- ing to the new qualified plug-in electric drive motor vehicle credit under § 30D of the Internal Revenue Code. Specifically, this notice provides procedures for a ve- hicle manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) to certify to the Internal Rev- enue Service (“Service”) both: (1) That a motor vehicle of a particu- lar make, model, and model year meets certain requirements that must be satisfied to claim the new qualified plug-in electric drive motor vehicle credit under § 30D; and (2) The amount of the credit allowable with respect to that motor vehicle. This notice also provides guidance to taxpayers who purchase motor vehicles re- garding the conditions under which they may rely on the vehicle manufacturer’s (or, in the case of a foreign vehicle manufac- turer, its domestic distributor’s) certifica- tion in determining whether a credit is al- lowable with respect to the vehicle and the amount of the credit. The Service and the Treasury Department expect that the regu- lations will incorporate the rules set forth in this notice. Section 30D originally was enacted in the Energy Improvement and Extension Act of 2008, Pub. L. 110–343, 122 Stat. 3765. The American Recovery and Rein- vestment Act of 2009, Pub. L. 111–5, 123 Stat. 115, amended § 30D in certain re- spects, and those amendments are effective for vehicles acquired after December 31, 2009. The Service and Treasury Depart- ment will issue subsequent guidance relat- ing to those amendments. All references to § 30D in this notice are to the provision as in effect before its amendment. Section 2. BACKGROUND Section 30D provides for a credit for certain new qualified plug-in electric drive motor vehicles. The credit is equal to the sum of: (1) $2,500, plus (2) $417 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours. Section 30D(b)(1) limits the amount of the credit allowed for a vehicle to amounts ranging from $7,500 to $15,000, depending on the gross vehicle weight rating of the vehicle. The new qualified plug-in electric drive motor vehicle credit phases out over the period beginning with the second calendar quarter after the calendar quarter in which at least 250,000 qualifying vehicles have been sold for use in the United States (de- termined on a cumulative basis for sales after December 31, 2008) (phase-out pe- riod”). Qualifying vehicles purchased in the first two calendar quarters of the phase- out period are eligible for 50 percent of the credit. Qualifying vehicles purchased in the third and fourth calendar quarters of the phase-out period are eligible for 25 per- cent of the credit. Vehicles purchased after the last day of the fourth calendar quarter of the phase-out period are not eligible for a credit. If a vehicle qualifies for a credit under both § 30B and § 30D, the amount of the credit allowed under § 30B is the amount of the otherwise allowable credit under that section reduced (but not below zero) by the amount of the credit allowed under § 30D. In addition, if a vehicle qual- ifies for a credit under § 30D, no credit is allowed for that vehicle under § 30. Section 3. SCOPE OF NOTICE The new qualified plug-in electric drive motor vehicle credit applies to plug-in electric drive motor vehicles, including low speed vehicles as defined in section 4(6) of this notice, that— (1) Are placed in service by the tax- payer in a taxable year beginning after De- cember 31, 2008; (2) Are acquired by the taxpayer on or before December 31, 2009; and (3) Otherwise meet the requirements of §30D. Section 4. MEANING OF TERMS The following definitions apply for pur- poses of this notice: .01In General. Terms used in this no- tice and not defined in this section 4 have thesamemeaningaswhenusedin§30D. .02 Clean Air Act Regulations. The Clean Air Act regulations are the regula- tions prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. §§ 7521,et. seq.). .03Traction Battery Capacity. Traction battery capacity is measured in kilowatt hours from a 100 percent state of charge to a zero percent state of charge. .04Motor Vehicle. The term “motor vehicle” has the meaning given that term by§30(c)(2). .05Manufacturer. The term “manufac- turer” has the meaning given that term in the Clean Air Act regulations. .06Passenger Vehicle and Light Truck. The terms “passenger vehicle” and “light truck” do not include (1) any vehicle that has a gross vehicle weight of more than 8,500 pounds and (2) any vehicle that is not treated as a motor vehicle in the Clean Air Act regulations. A low speed vehicle, as defined in section 4.07 of this notice, is not treated as a motor vehicle in the Clean Air Act regulations. Accordingly, a low June 29, 200911242009–26 I.R.B. speed vehicle is not a passenger vehicle or light truck and is not required to receive a certificate of conformity under the Clean Air Act to qualify for the credit. .07Low Speed Vehicle.The term “low speed vehicle” means a vehicle: (1) That has at least four wheels; (2) That is manufactured primarily for use on public streets, roads and highways (not including a vehicle operated exclu- sively on a rail or rails); (3) That is not manufactured primarily for off-road use, such as primarily for use on a golf course; (4) Whose speed attainable in one mile is more than 20 miles per hour and not more than 25 miles per hour on a paved level surface; and (5) Whose gross vehicle weight rating is less than 3,000 pounds. .08Model Year. The term “model year” means the model year determined under the Clean Air Act regulations (see 40 CFR § 86–082–2). Section 5. MANUFACTURER’S CERTIFICATION AND QUARTERLY REPORTS .01When Certification Permitted.A vehicle manufacturer (or, in the case of a foreign vehicle manufacturer, its domes- tic distributor) may certify to purchasers that a motor vehicle of a particular make, model, and model year meets all require- ments (other than those listed in section 5.02 of this notice) that must be satisfied to claim the new qualified plug-in electric drive motor vehicle credit allowable under § 30D with respect to the vehicle, if the fol- lowing requirements are met: (1) The manufacturer (or, in the case of a foreign vehicle manufacturer, its domes- tic distributor) has submitted to the Ser- vice, in accordance with this section 5 of this notice, a certification with respect to the vehicle and the certification satisfies the requirements of section 5.03 of this no- tice; (2) The manufacturer (or, in the case of a foreign vehicle manufacturer, its domes- tic distributor) hasreceived an acknowl- edgment of the certification from the Ser- vice. .02Purchaser’s Reliance. Except as provided in section 5.07 of this notice, a purchaserofamotorvehiclemayrelyon the manufacturer’s (or, in the case of a foreign vehicle manufacturer, its domestic distributor’s) certification concerning the vehicle and the amount of the credit allow- able with respect to the vehicle (including in cases in which the certification is re- ceived after the purchase of the vehicle). The purchaser may claim a credit in the certified amount with respect to the vehi- cle if the following requirements are satis- fied: (1) The vehicle is placed in service by the taxpayer in a taxable year beginning after December 31, 2008, and is purchased by the taxpayer on or before December 31, 2009; (2) The original use of the vehicle com- mences with the taxpayer; (3) The vehicle is acquired for use or lease by the taxpayer, and not for resale; and (4) The vehicle is used predominantly in the United States. .03Content of Certification. The cer- tification must contain the information re- quired in section 5.03(1) of this notice and any applicable additional information re- quired in section 5.03(2) or (3) of this no- tice. (1)All Vehicles. For all vehicles, the certification must contain the following: (a) The name, address, and taxpayer identification number of the certifying en- tity. (b) The make, model, model year, and any other appropriate identifiers of the mo- tor vehicle. (c) A statement that the vehicle is made by a manufacturer. (d) A statement that the vehicle is a mo- tor vehicle within the meaning of section 4.03 of this notice. (e) The amount of the credit for the ve- hicle (showing computations). (f) The gross vehicle weight rating of the vehicle. (g) A statement that the motor vehicle draws propulsion using a traction battery with at least 4 kilowatt hours of capacity. (h) The number of kilowatt hours, if any, in excess of 4 kilowatt hours. (i) A statement that the vehicle uses an offboard source of energy to recharge the battery. (j) A statement that the vehicle com- plies with the applicable provisions of the Clean Air Act. (k) A statement that the vehicle com- plies with the applicable air quality pro- visions of state law of each state that has adopted the provisions under a waiver un- der § 209(b) of the Clean Air Act or a list identifying each state that has adopted ap- plicable air quality provisions with which the vehicle does not comply. (l) A description of the motor vehicle safety provisions of 49 U.S.C. §§ 30101 through 30169 applicable to the vehicle and a statement that the vehicle complies with those provisions. (m) A declaration, applicable to the cer- tification, statements, and any accompa- nying documents, signed by a person cur- rently authorized tobind the manufacturer (or, in the case of a foreign vehicle manu- facturer, its domesticdistributor) in these matters, in the following form: “Under penalties of perjury, I declare that I have examined this certification, including ac- companying documents, and to the best of my knowledge and belief, the facts pre- sented in support of this certification are true, correct, and complete.” (2)Passenger Vehicles and Light Trucks. If the vehicle is a passenger vehicle or light truck (determined after application of the limitations in section 4.06 of this notice), the certification must also contain the following: (a) A copy of the certificate of confor- mity under the Clean Air Act. (b) Documents demonstrating that the vehicle meets or exceeds the equivalent qualifying California low emission vehi- cle standard under section 243(e)(2) of the Clean Air Act for that make and model year. (c) In the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, documents showing that the vehicle meets or exceeds the Bin 5 Tier II emission standard established in reg- ulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle. (d) In the case of a vehicle having a gross vehicle weight rating of more than 6,000 pounds, but not more than 8,500 pounds, documents showing the vehicle meets or exceeds the Bin 8 Tier II emis- sion standard which is so established. (3)Low Speed Vehicles. A certification with respect to a low speed vehicle as de- finedinsection4.07ofthisnoticemust also contain the following: 2009–26 I.R.B.1125June 29, 2009 (a) A statement that the vehicle has at least four wheels. (b) A statement that the vehicle is manufactured primarily for use on public streets, roads and highways. (c) A statement that the vehicle is not manufactured primarily for off-road use, such as primarily for use on a golf course. (d) Evidence that the speed attainable bythevehicleinonemileismorethan20 miles per hour and not more than 25 miles per hour on a paved level surface. .04Acknowledgement of Certification. The Service will review the original signed certification and issue an acknowledgment letter to the vehicle manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) within 30 days of receipt of the request for certification. This acknowledgment letter will state whether purchasers may rely on the certification. .05Quarterly Reporting of Sales of Qualified Vehicles. A manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) that has received an acknowledgment of its certification from the Service must submit to the Ser- vice, in accordance with section 6 of this notice, a report of the number of qualified plug-in electric drive motor vehicles sold by the manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) to consumers or retail dealers during the calendar quarter. The quarterly report must contain the following infor- mation: (1) The name, address, and taxpayer identification number of the reporting en- tity. (2) The number of qualified vehicles sold by the reporting entity to consumers or retail dealers during the calendar quar- ter. (3) The make, model, model year, and any other appropriateidentifiers of the qualified vehicles sold during the calendar quarter. (4) A declaration, applicable to the quarterly report and any accompanying documents, signed by a person currently authorized to bind the manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) in these matters, in the following form: “Under penalties of perjury, I declare that I have examined this report, including accompanying doc- uments, and to the best of my knowledge and belief, the facts presented in support of this report are true, correct, and com- plete.” .06Acknowledgment of Quarterly Re- port. The Service will review the orig- inal signed quarterly report and issue an acknowledgment letter to the vehicle manufacturer (or, inthe case of a foreign vehicle manufacturer, its domestic dis- tributor) within 30 days of receipt of the report. This acknowledgment letter will state whether purchasers may continue to rely on the certification. .07Effect of Erroneous Certification, Erroneous Quarterly Reports, or Failure to Make Timely Quarterly Reports. (1)Erroneous Certification or Quar- terly Report. The acknowledgment that the Service provides for a certification is not a determination that a vehicle quali- fies for the credit, or that the amount of the credit is correct. The Service may, upon examination (and after any appro- priate consultation with the Department of Transportation or the Environmental Pro- tection Agency), determine that the vehi- cle is not a new qualified plug-in electric drive motor vehicle or that the amount of the credit determined by the manufacturer (or, in the case of a foreign vehicle manu- facturer, its domestic distributor) to be al- lowable with respect to the vehicle is in- correct. In either event, or in the event that the manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) makes an erroneous quarterly report, the manufacturer’s (or, in the case of a foreign vehicle manufacturer, its do- mestic distributor’s) right to provide a cer- tification to future purchasers of the new qualified plug-in electric drive motor ve- hicles will be withdrawn, and purchasers who acquire a vehicle after the date on which the Service publishes an announce- ment of the withdrawal may not rely on the certification. Purchasers may continue to rely on the certification for vehicles they acquired on or before the date on which the announcement of the withdrawal is pub- lished (including in cases in which the ve- hicle is not placed in service and the credit is not claimed until after that date), and the Service will not attempt to collect any understatement of tax liability attributable to such reliance. Manufacturers (or, in the case of foreign vehicle manufacturers, their domestic distributors) are reminded that an erroneous certification or an erro- neous quarterly report may result in the imposition of penalties, including, but not limited to, the penalties: (a) Under § 7206 for fraud and making false statements; and (b) Under § 6701 for aiding and abetting an understatement of tax liability in the amount of $1,000 ($10,000 in the case of understatements by corporations) per re- turn on which a credit is claimed in re- liance on the certification. (2)Failure to Make Timely Quarterly Report. If a manufacturer (or, in the case of a foreign vehicle manufacturer, its do- mestic distributor) fails to make a quar- terly report in accordance with section 5.05 of this notice and at the time specified in section 6.02 of this notice, the acknowl- edgment letter issued under section 5.04 of this notice may be withdrawn, and pur- chasers will not be entitled to rely on the related certification for quarters beginning after the date on which the Service pub- lishes an announcement of the withdrawal (generally, quarters beginning after the due date of the report). If the quarterly report is filed subsequently, the Service may reis- sue the acknowledgment letter and retract the withdrawal announcement. Section 6. TIME AND ADDRESS FOR FILING CERTIFICATION AND QUARTERLY REPORTS .01Time for Filing Certification.Inor- der for a certification under section 5 of this notice to be effective for new quali- fied plug-in electric drive motor vehicles placed in service during a calendar year, the certification must be received by the Service not later than December 31 of that calendar year. .02Time for Filing Quarterly Reports. A report of sales of qualified vehicles dur- ing a quarter must be filed with the Service at the address specified in section 6.03 of this notice not later than the last day of the first calendar month following the quarter to which the report relates. .03Address for Filing. Certifications and quarterly reports under section 5 of this notice must be sent to: Internal Revenue Service Industry Director, LMSB, Heavy Manufacturing & Transportation MetroParkOfficeComplex—LMSB 111 Wood Avenue, South Iselin, New Jersey 08830 June 29, 200911262009–26 I.R.B. Section 7. PAPERWORK REDUCTION ACT The collection of information contained in this notice has been reviewed and ap- proved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–2137. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. The collections of information in this notice are in sections 5 and 6. This infor- mation is collected and retained in order to ensure that vehicles meet the require- ments for the new qualified plug-in elec- tric drive motor vehicle credit under § 30D. This information will be used to determine whether the vehicle for which the credit is claimed by a taxpayer is property that qualifies for the credit. The collection of information is voluntary to obtain a ben- efit. The likely respondents are corpora- tions and partnerships. The estimated total annual reporting burden is 280 hours. The estimated annual burden per re- spondent varies from 20 hours to 35 hours, depending on individual circumstances, with an estimated average burden of 24 hours to complete the certification re- quired under this notice. The estimated number of respondents is 12. The estimated annual frequency of re- sponses is on occasion. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. SECTION 8. DRAFTING INFORMATION The principal author of this notice is Patrick S. Kirwan of the Office of Asso- ciate Chief Counsel (Passthroughs & Spe- cial Industries). For further information regarding this notice, contact Mr. Kirwan at (202) 622–3110 (not a toll-free call). 2009–26 I.R.B.1127June 29, 2009 Part IV. Items o fGeneralInterest Deletions From Cumulative List of Organizations Contributions to Which are Deductible Under Section 170 of the Code Announcement 2009–54 The Internal Revenue Service has re- voked its determination that the organi- zations listed below qualify as organiza- tions described in sections 501(c)(3) and 170(c)(2) of the Internal Revenue Code of 1986. Generally, the Service will not disallow deductions for contributions made to a listed organization on or before the date of announcement in the Internal Revenue Bulletin that an organization no longer qualifies. However, the Service is not precluded from disallowing a deduction for any contributions made after an or- ganization ceases to qualify under section 170(c)(2) if the organization has not timely filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or determination letter, (2) was aware that such revocation was imminent, or (3) was in part responsible for or was aware of the activities or omissions of the organization that brought about this revocation. If on the other hand a suit for declara- tory judgment has been timely filed, con- tributions from individuals and organiza- tions described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on June 29, 2009, and would end on the date the court first deter- mines that the organization is not described in section 170(c)(2) as more particularly set forth in section 7428(c)(1). For indi- vidual contributors, the maximum deduc- tion protected is $1,000, with a husband and wife treated as one contributor. This benefit is not extended to any individual, in wholeorinpart,fortheactsoromissions of the organization that were the basis for revocation. Home Ownership Providers, Inc Marietta, GA Wasatch Homes Charitable Foundation Draper, UT Announcement of Disciplinary Sanctions From the Office of Professional Responsibility Announcement 2009-55 TheOfficeofProfessionalResponsi- bility (OPR) announcesrecent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, en- rolled actuaries, enrolled retirement plan agents, and appraisers. These individuals are subject to the regulations governing practice before the Internal Revenue Ser- vice (IRS), which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating the regulations. The disciplinary sanctions to be im- posed for violation of the regulations are: Disbarred from practice before the IRS—An individual who is disbarred is not eligible to represent taxpayers before the IRS. Suspended from practice before the IRS—An individual who is suspended is not eligible to represent taxpayers before the IRS during the term of the suspension. Censured in practice before the IRS—Censure is a public reprimand. Un- like disbarment or suspension, censure does not affect an individual’s eligibility to represent taxpayers before the IRS, but OPR may subject the individual’s future representations to conditions designed to promote high standards of conduct. Monetary penalty—A monetary penalty may be imposed on an individual who engages in conduct subject to sanc- tion or on an employer, firm, or entity if the individual was acting on its behalf and if it knew, or reasonably should have known, of the individual’s conduct. Disqualification of appraiser—An appraiser who is disqualified is barred from presenting evidence or testimony in any administrative proceeding before the Department of the Treasury or the IRS. Under the regulations, attorneys, cer- tified public accountants, enrolled agents, enrolled actuaries, and enrolled retirement plan agents may not assist, or accept assis- tance from, individuals who are suspended or disbarred with respect to matters consti- tuting practice (i.e., representation) before the IRS, and they may not aid or abet sus- pended or disbarred individuals to practice before the IRS. Disciplinary sanctions are described in these terms: Disbarred by decision after hearing, Suspended by decision after hearing, Censured by decision after hearing, Monetary penalty imposed after hear- ing, and Disqualified after hearing—An administrative law judge (ALJ) conducted an evidentiary hearing upon OPR’s com- plaint alleging violation of the regulations and issued a decision imposing one of these sanctions. After 30 days from the issuance of the decision, in the absence of an appeal, the ALJ’s decision became the final agency decision. Disbarred by default decision, Sus- pended by default decision, Censured by default decision, Monetary penalty im- posed by default decision, and Disqual- ified by default decision—An ALJ, after finding that no answer to OPR’s complaint had been filed, granted OPR’s motion for a default judgment and issued a decision im- posing one of these sanctions. Disbarment by decision on appeal, Suspended by decision on appeal, Cen- sured by decision on appeal, Monetary penalty imposed by decision on ap- peal, and Disqualified by decision on appeal—The decision of the ALJ was appealed to the agency appeal authority, June 29, 200911282009–26 I.R.B. acting as the delegate of the Secretary of the Treasury, and the appeal authority issued a decision imposing one of these sanctions. Disbarred by consent, Suspended by consent, Censured by consent, Mone- tary penalty imposed by consent, and Disqualified by consent—In lieu of a disciplinary proceeding being instituted or continued, an individual offered a con- sent to one of these sanctions and OPR accepted the offer. Typically, an offer of consent will provide for: suspension for an indefinite term; conditions that the individual must observe during the sus- pension; and the individual’s opportunity, after a stated number of months, to file with OPR a petition for reinstatement af- firming compliance with the terms of the consent and affirming current eligibility to practice (i.e., an active professional license or active enrollment status). An enrolled agent or an enrolled retirement plan agent may also offer to resign in order to avoid a disciplinary proceeding. Suspended by decision in expedited proceeding, Suspended by default de- cision in expedited proceeding, Sus- pended by consent in expedited pro- ceeding—OPR instituted an expedited proceeding for suspension (based on cer- tain limited grounds, including loss of a professional licenseand criminal convic- tions). OPR has authority to disclose the grounds for disciplinary sanctions in these situations: (1) an ALJ or the Secretary’s delegate on appeal has issued a decision on or after September 26, 2007, which was theeffectivedateofamendmentstothe regulations that permit making such deci- sions publicly available; (2) the individual has settled a disciplinary case by signing OPR’s “consent to sanction” form, which requires consenting individuals to admit to one or more violations of the regulations and to consent to the disclosure of the in- dividual’s own return information related to the admitted violations (for example, failure to file Federal income tax returns); or (3) OPR has issued a decision in an expedited proceeding for suspension. Announcements of disciplinary sanc- tions appear in the Internal Revenue Bul- letin at the earliest practicable date. The sanctions announced below are alphabet- ized first by the names of states and sec- ond by the last names of individuals. Un- less otherwise indicated, section numbers (e.g., §10.51) refer to the regulations. City & StateNameProfessionalDisciplinary SanctionEffective Date(s) Designation Arizona ScottsdaleAinsworth, Brent L.Enrolled AgentSuspended by default decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 287, false fictitious and fraudulent claims) Indefinite from June 8, 2009 Illinois Long GroveNeubauer, David K.Enrolled AgentDisbarred by ALJ default decision for violation of § 10.51 (willful failure to timely file Forms 941 and for failure to make required deposits of employment taxes) Indefinite from April 14, 2009 Kansas OlatheDowell, Douglas W.AttorneySuspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license in Missouri) Indefinite from June 8, 2009 Arkansas CityParman, Jon P.CPASuspended by consent for violation of § 10.51 (failure to timely file several Form 1040) Indefinite from April 1, 2009 2009–26 I.R.B.1129June 29, 2009 City & StateNameProfessionalDisciplinary SanctionEffective Date(s) Designation Kentucky SalyersvilleHoward, VickieAttorneySuspended by decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from June 8, 2009 Massachusetts LynnSacher, Bruce N.AttorneySuspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from June 8, 2009 Skouras, Jr., Peter G., See New Hampshire Minnesota MinneapolisTaber, Daniel P.AttorneySuspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from June 8, 2009 Missouri Dowell, Douglas W., See Kansas New Hampshire ExeterSkouras, Jr., Peter G.AttorneySuspended by default decision in expedited proceeding under § 10.82 (attorney disbarment in Massachusetts) Indefinite from June 8, 2009 New York BaysideKatz, Benjamin Z.AttorneySuspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from June 8, 2009 North Carolina WaxhawSmith, Troy A.AttorneySuspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from June 8, 2009 Ohio DublinCole, Michael D.CPASuspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from June 4, 2009 June 29, 200911302009–26 I.R.B. City & StateNameProfessionalDisciplinary SanctionEffective Date(s) Designation Texas WeatherfordVickers, Brenda J.AttorneySuspended by default decision in expedited proceeding under § 10.82 (conviction under 26 U.S.C. § 7203, intentional failure to file personal tax return) Indefinite from June 4, 2009 2009–26 I.R.B.1131June 29, 2009 Definition of Terms Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the ef- fect: Amplifieddescribes a situation where no change is being made in a prior pub- lished position, but the prior position is be- ingextendedtoapplytoavariationofthe fact situation set forth therein. Thus, if an earlier ruling held that a principle ap- plied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare withmodi- fied,below). Clarifiedis used in those instances where the language in a prior ruling is be- ing made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed. Distinguisheddescribes a situation where a ruling mentions a previously pub- lished ruling and points out an essential difference between them. Modifiedis used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare withamplifiedandclarified, above). Obsoleteddescribes a previously pub- lished ruling that is not considered deter- minative with respect to future transac- tions. This term is most commonly used in a ruling that lists previously published rul- ings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. Revokeddescribes situations where the position in the previously published ruling is not correct and the correct position is beingstatedinanewruling. Supersededdescribes a situation where the new ruling does nothing more than re- state the substance and situation of a previ- ously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same po- sition published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single rul- ing a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new rul- ing does more than restate the substance of a prior ruling, a combination of terms is used. For example,modifiedandsu- persededdescribes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously pub- lished ruling is first modified and then, as modified, is superseded. Supplementedis used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original rul- ing has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the ad- ditions, and supersedes all prior rulings in the series. Suspendedis used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study. Abbreviations The fol lowing abbreviations in current use and for merly used will appear in material publis hedintheBulletin. A—Individual. Acq.—A cquiescence. B—Individual. BE—Beneficiary. BK—Bank . B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cu mulative Bulletin. CFR—Code of Federal Regulations. CI—City. COOP—Coo perative. Ct.D.—Court Decision. CY—County. D—Decede nt. DC—Dummy Corporation. DE—Donee. Del. Order —Delegation Order. DISC—Domestic International Sales Corporation. DR—Donor. E—Estate. EE—Employee. E.O.—Executive Order. ER—Emp loyer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduc iary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Fo reign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Fed eral Unemployment Tax Act. FX—Foreign corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grante e. GP—General Partner. GR—Grantor. IC—Insura nce Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—No nacquiescence. O—Organization. P—Parent Corporation. PHC—Persona l Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Pa rtnership. PTE—Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Re al Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsi diary. S.P.R.—Statement of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Trans feree. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpay er. TR—Trust. TT—Trustee. U.S.C.—Uni ted States Code. X—Corporation. Y—Corporation. Z—Corporat ion. June 29, 2009i2009–26 I.R.B. Numerical Finding List 1 Bulletins 2009–1 through 2009–26 Announcements: 2009-1, 2009-1 I.R.B.242 2009-2, 2009-5 I.R.B.424 2009-3, 2009-6 I.R.B.459 2009-4, 2009-8 I.R.B.597 2009-5, 2009-8 I.R.B.569 2009-6, 2009-9 I.R.B.643 2009-7, 2009-10 I.R.B.663 2009-8, 2009-8 I.R.B.598 2009-9, 2009-9 I.R.B.643 2009-10, 2009-9 I.R.B.644 2009-11, 2009-10 I.R.B.663 2009-12, 2009-11 I.R.B.686 2009-13, 2009-11 I.R.B.686 2009-14, 2009-11 I.R.B.687 2009-15, 2009-11 I.R.B.687 2009-16, 2009-11 I.R.B.691 2009-17, 2009-12 I.R.B.714 2009-18, 2009-12 I.R.B.714 2009-19, 2009-12 I.R.B.715 2009-20, 2009-12 I.R.B.716 2009-21, 2009-13 I.R.B.730 2009-22, 2009-13 I.R.B.731 2009-23, 2009-13 I.R.B.731 2009-24, 2009-13 I.R.B.732 2009-25, 2009-14 I.R.B.755 2009-26, 2009-14 I.R.B.755 2009-27, 2009-14 I.R.B.756 2009-28, 2009-15 I.R.B.760 2009-29, 2009-14 I.R.B.757 2009-30, 2009-15 I.R.B.794 2009-31, 2009-15 I.R.B.798 2009-32, 2009-15 I.R.B.799 2009-33, 2009-15 I.R.B.799 2009-34, 2009-18 I.R.B.916 2009-35, 2009-17 I.R.B.892 2009-36, 2009-18 I.R.B.927 2009-37, 2009-19 I.R.B.940 2009-38, 2009-19 I.R.B.940 2009-39, 2009-20 I.R.B.1022 2009-40, 2009-20 I.R.B.1023 2009-41, 2009-20 I.R.B.1026 2009-42, 2009-20 I.R.B.1027 2009-43, 2009-24 I.R.B.1075 2009-44, 2009-24 I.R.B.1079 2009-45, 2009-21 I.R.B.1040 2009-46, 2009-21 I.R.B.1040 2009-47, 2009-23 I.R.B.1071 2009-48, 2009-23 I.R.B.1071 2009-49, 2009-24 I.R.B.1092 2009-50, 2009-25 I.R.B.1105 2009-51, 2009-25 I.R.B. 1105 2009-52, 2009-25 I.R.B.1106 Announcements— Continued: 2009-53, 2009-25 I.R.B.1107 2009-54, 2009-26 I.R.B.1128 2009-55, 2009-26 I.R.B.1128 Notices: 2009-1, 2009-2 I.R.B.250 2009-2, 2009-4 I.R.B.344 2009-3, 2009-2 I.R.B.250 2009-4, 2009-2 I.R.B.251 2009-5, 2009-3 I.R.B.309 2009-6, 2009-3 I.R.B.311 2009-7, 2009-3 I.R.B.312 2009-8, 2009-4 I.R.B.347 2009-9, 2009-5 I.R.B.419 2009-10, 2009-5 I.R.B.419 2009-11, 2009-5 I.R.B.420 2009-12, 2009-6 I.R.B.446 2009-13, 2009-6 I.R.B.447 2009-14, 2009-7 I.R.B.516 2009-15, 2009-6 I.R.B.449 2009-16, 2009-8 I.R.B.572 2009-17, 2009-8 I.R.B.575 2009-18, 2009-10 I.R.B.648 2009-19, 2009-10 I.R.B.660 2009-20, 2009-12 I.R.B.711 2009-21, 2009-13 I.R.B.724 2009-22, 2009-14 I.R.B.741 2009-23, 2009-16 I.R.B.802 2009-24, 2009-16 I.R.B.817 2009-25, 2009-15 I.R.B.758 2009-26, 2009-16 I.R.B.833 2009-27, 2009-16 I.R.B.838 2009-28, 2009-24 I.R.B.1082 2009-29, 2009-16 I.R.B.849 2009-30, 2009-16 I.R.B.852 2009-31, 2009-16 I.R.B.856 2009-32, 2009-17 I.R.B.865 2009-33, 2009-17 I.R.B.865 2009-34, 2009-17 I.R.B.876 2009-35, 2009-17 I.R.B.876 2009-36, 2009-17 I.R.B.883 2009-37, 2009-18 I.R.B.898 2009-38, 2009-18 I.R.B.901 2009-39, 2009-18 I.R.B.902 2009-40, 2009-19 I.R.B.931 2009-41, 2009-19 I.R.B.933 2009-42, 2009-20 I.R.B.1011 2009-43, 2009-21 I.R.B.1037 2009-44, 2009-21 I.R.B.1037 2009-45, 2009-22 I.R.B.1047 2009-46, 2009-23 I.R.B.1068 2009-47, 2009-24 I.R.B.1083 2009-48, 2009-24 I.R.B.1085 2009-49, 2009-25 I.R.B.1093 2009-50, 2009-26 I.R.B.1118 Notices— Continued: 2009-52, 2009-25 I.R.B.1094 2009-53, 2009-25 I.R.B.1095 2009-54, 2009-26 I.R.B.1124 2009-56, 2009-25 I.R.B.1100 Proposed Regulations: REG-144615-02, 2009-7 I.R.B.561 REG-144689-04, 2009-18 I.R.B.906 REG-148568-04, 2009-5 I.R.B.421 REG-160872-04, 2009-4 I.R.B.358 REG-158747-06, 2009-4 I.R.B.362 REG-116699-07, 2009-13 I.R.B.727 REG-138326-07, 2009-9 I.R.B.638 REG-143686-07, 2009-8 I.R.B.579 REG-150670-07, 2009-4 I.R.B.378 REG-107271-08, 2009-22 I.R.B.1051 REG-107845-08, 2009-20 I.R.B.1014 REG-113462-08, 2009-4 I.R.B.379 REG-119532-08, 2009-20 I.R.B.1017 REG-147636-08, 2009-9 I.R.B.641 REG-150066-08, 2009-5 I.R.B.423 REG-115699-09, 2009-22 I.R.B.1052 Revenue Procedures: 2009-1, 2009-1 I.R.B.1 2009-2, 2009-1 I.R.B.87 2009-3, 2009-1 I.R.B.107 2009-4, 2009-1 I.R.B.118 2009-5, 2009-1 I.R.B.161 2009-6, 2009-1 I.R.B.189 2009-7, 2009-1 I.R.B.226 2009-8, 2009-1 I.R.B.229 2009-9, 2009-2 I.R.B.256 2009-10, 2009-2 I.R.B.267 2009-11, 2009-3 I.R.B.313 2009-12, 2009-3 I.R.B.321 2009-13, 2009-3 I.R.B.323 2009-14, 2009-3 I.R.B.324 2009-15, 2009-4 I.R.B.356 2009-16, 2009-6 I.R.B.449 2009-17, 2009-7 I.R.B.517 2009-18, 2009-11 I.R.B.670 2009-19, 2009-14 I.R.B.747 2009-20, 2009-14 I.R.B.749 2009-21, 2009-16 I.R.B.860 2009-22, 2009-16 I.R.B.862 2009-23, 2009-17 I.R.B.884 2009-24, 2009-17 I.R.B.885 2009-25, 2009-24 I.R.B.1088 2009-26, 2009-19 I.R.B.935 2009-27, 2009-19 I.R.B.938 2009-28, 2009-20 I.R.B.1011 2009-29, 2009-22 I.R.B.1050 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2008–27 through 2008–52 is in Internal Revenue Bulletin 2008–52, dated December 29, 2008. 2009–26 I.R.B.iiJune 29, 2009 Revenue Rulings: 2009-1, 2009-2 I.R.B.248 2009-2, 2009-2 I.R.B.245 2009-3, 2009-5 I.R.B.382 2009-4, 2009-5 I.R.B.408 2009-5, 2009-6 I.R.B.432 2009-6, 2009-12 I.R.B.694 2009-7, 2009-13 I.R.B.717 2009-8, 2009-10 I.R.B.645 2009-9, 2009-14 I.R.B.735 2009-10, 2009-14 I.R.B.738 2009-11, 2009-18 I.R.B.896 2009-12, 2009-19 I.R.B.928 2009-13, 2009-21 I.R.B.1029 2009-14, 2009-21 I.R.B.1031 2009-15, 2009-21 I.R.B.1035 2009-16, 2009-23 I.R.B.1058 2009-17, 2009-26 I.R.B.1111 Tax Conventions: 2009-5, 2009-8 I.R.B.569 2009-43, 2009-24 I.R.B.1075 2009-44, 2009-24 I.R.B.1079 Treasury Decisions: 9434, 2009-4 I.R.B.339 9435, 2009-4 I.R.B.333 9436, 2009-3 I.R.B.268 9437, 2009-4 I.R.B.341 9438, 2009-5 I.R.B.387 9439, 2009-5 I.R.B.416 9440, 2009-5 I.R.B.409 9441, 2009-7 I.R.B.460 9442, 2009-6 I.R.B.434 9443, 2009-8 I.R.B.564 9444, 2009-9 I.R.B.603 9445, 2009-9 I.R.B.635 9446, 2009-9 I.R.B.607 9447, 2009-12 I.R.B.694 9448, 2009-20 I.R.B.942 9449, 2009-22 I.R.B.1044 9450, 2009-24 I.R.B.1073 9451, 2009-23 I.R.B.1060 June 29, 2009iii2009–26 I.R.B. Finding List of Current Actions on Previously Published Items 1 Bulletins 2009–1 through 2009–26 Notices: 99-35 Obsoleted by Notice 2009-15, 2009-6 I.R.B.449 2001-55 Modified by Notice 2009-1, 2009-2 I.R.B.250 2002-27 Modified by Notice 2009-9, 2009-5 I.R.B.419 2005-74 Obsoleted by T.D. 9446, 2009-9 I.R.B.607 2006-26 Superseded by Notice 2009-53, 2009-25 I.R.B.1095 2007-26 Modified by Notice 2009-15, 2009-6 I.R.B.449 2007-52 Clarified, modified, and amplified by Notice 2009-24, 2009-16 I.R.B.817 2007-53 Clarified, modified, and ampilfied by Notice 2009-23, 2009-16 I.R.B.802 2007-54 Obsoleted by T.D. 9436, 2009-3 I.R.B.268 2008-11 Obsoleted by T.D. 9436, 2009-3 I.R.B.268 2008-12 Obsoleted by T.D. 9436, 2009-3 I.R.B.268 Rev. Proc. 2009-11, 2009-3 I.R.B.313 2008-13 Obsoleted by T.D. 9436, 2009-3 I.R.B.268 List of forms modified and superseded by Rev. Proc. 2009-11, 2009-3 I.R.B.313 Modified and clarified by Notice 2009-5, 2009-3 I.R.B.309 2008-46 Obsoleted by T.D. 9436, 2009-3 I.R.B.268 Rev. Proc. 2009-11, 2009-3 I.R.B.313 Notices— Continued: 2008-100 Amplified and superseded by Notice 2009-14, 2009-7 I.R.B.516 2008-110 Modified by Notice 2009-34, 2009-17 I.R.B.876 2009-31 Modified by Notice 2009-42, 2009-20 I.R.B.1011 Proposed Regulations: REG-144615-02 Corrected by Ann. 2009-19, 2009-12 I.R.B.715 REG-149519-03 Withdrawn by Ann. 2009-4, 2009-8 I.R.B.597 REG-148326-05 Corrected by Ann. 2009-14, 2009-11 I.R.B.687 REG-158747-06 Hearing scheduled by Ann. 2009-29, 2009-14 I.R.B.757 REG-138326-07 Hearing cancelled by Ann. 2009-49, 2009-24 I.R.B.1092 REG-143686-07 Corrected by Ann. 2009-40, 2009-20 I.R.B.1023 REG-119532-08 Corrected by Ann. 2009-50, 2009-25 I.R.B.1105 REG-150066-08 Corrected by Ann. 2009-31, 2009-15 I.R.B.798 Hearing cancelled by Ann. 2009-36, 2009-18 I.R.B.927 Revenue Procedures: 2007-17 Superseded by Rev. Proc. 2009-14, 2009-3 I.R.B.324 2007-66 Modified and superseded by Rev. Proc. 2009-21, 2009-16 I.R.B.860 2007-68 Superseded by Rev. Proc. 2009-17, 2009-7 I.R.B.517 2007-71 Modified by Notice 2009-3, 2009-2 I.R.B.250 Revenue Procedures— Continued: 2008-1 Superseded by Rev. Proc. 2009-1, 2009-1 I.R.B.1 2008-2 Superseded by Rev. Proc. 2009-2, 2009-1 I.R.B.87 2008-3 Superseded by Rev. Proc. 2009-3, 2009-1 I.R.B.107 2008-4 Superseded by Rev. Proc. 2009-4, 2009-1 I.R.B.118 2008-5 Superseded by Rev. Proc. 2009-5, 2009-1 I.R.B.161 2008-6 Superseded by Rev. Proc. 2009-6, 2009-1 I.R.B.189 2008-7 Superseded by Rev. Proc. 2009-7, 2009-1 I.R.B.226 2008-8 Superseded by Rev. Proc. 2009-8, 2009-1 I.R.B.229 2008-9 Superseded by Rev. Proc. 2009-9, 2009-2 I.R.B.256 2008-17 Obsoleted in part by Rev. Proc. 2009-18, 2009-11 I.R.B.670 2008-19 Obsoleted in part by Rev. Proc. 2009-27, 2009-19 I.R.B.938 2008-61 Superseded by Rev. Proc. 2009-3, 2009-1 I.R.B.107 2008-65 Amplified and supplemented by Rev. Proc. 2009-16, 2009-6 I.R.B.449 2008-66 Modified and superseded by Rev. Proc. 2009-21, 2009-16 I.R.B.860 2008-68 Amplified and superseded by Rev. Proc. 2009-15, 2009-4 I.R.B.356 2009-1 Amplified by Rev. Proc. 2009-25, 2009-24 I.R.B.1088 1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2008–27 through 2008–52 is in Internal Revenue Bulletin 2008–52, dated December 29, 2008. 2009–26 I.R.B.ivJune 29, 2009 Revenue Procedures— Continued: 2009-3 Amplified by Rev. Proc. 2009-25, 2009-24 I.R.B.1088 2009-19 Modified and superseded by Rev. Proc. 2009-26, 2009-19 I.R.B.935 Revenue Rulings: 65-286 Obsoleted by T.D. 9435, 2009-4 I.R.B.333 71-381 Obsoleted in part by Rev. Rul. 2009-9, 2009-14 I.R.B.735 76-54 Obsoleted by T.D. 9435, 2009-4 I.R.B.333 92-19 Supplemented by Rev. Rul. 2009-3, 2009-5 I.R.B.382 2008-19 Modified by Rev. Rul. 2009-3, 2009-5 I.R.B.382 Treasury Decisions: 9394 Corrected by Ann. 2009-42, 2009-20 I.R.B.1027 9436 Corrected by Ann. 2009-15, 2009-11 I.R.B.687 9438 Corrected by Ann. 2009-30, 2009-15 I.R.B.794 9439 Corrected by Ann. 2009-12, 2009-11 I.R.B.686 9441 Corrected by Ann. 2009-18, 2009-12 I.R.B.714 Ann. 2009-39, 2009-20 I.R.B.1022 9442 Corrected by Ann. 2009-13, 2009-11 I.R.B.686 Ann. 2009-20, 2009-12 I.R.B.716 9446 Corrected by Ann. 2009-23, 2009-13 I.R.B.731 Ann. 2009-45, 2009-21 I.R.B.1040 9448 Corrected by Ann. 2009-52, 2009-25 I.R.B.1106 June 29, 2009v2009–26 I.R.B. INDEX Internal Revenue Bulletins 2009–1 through 2009–26 The abbreviation and number in parenthesis following the index entry refer to the specific item; numbers in roman and italic type following the parenthesis refers to the Internal Revenue Bulletin in which the item may be found and the page number on which it appears. Key to Abbreviations: AnnAnnouncement CDCourt Decision DODelegation Order EOExecutive Order PLPublic Law PTEProhibited Transaction Exemption RPRevenue Procedure RRRevenue Ruling SPRStatement of Procedural Rules TCTax Convention TDTreasury Decision TDOTreasury Department Order EMPLOYEE PLANS Asset valuation, funding (Notice 22) 14,741 Calculation of amount includible in income under section 409A, correction to REG–148326–05 (Ann 14) 11,687 COBRA continuation coverage (Notice 27) 16,838 Contributions, automatic contribution arrangements (TD 9447) 12,694 Definition of “Change of control” under section 409A (Notice 49) 25,1093 Determination letters, issuing procedures (RP 6) 1,189 Full funding limitations, weighted average interest rates, seg- ment rates for: January 2009 (Notice 2) 4,344 February 2009 (Notice 16) 8,572 March 2009 (Notice 20) 12,711 April 2009 (Notice 39) 18,902 May 2009 (Notice 45) 22,1047 June 2009 (Notice 56) 25,1100 Interim guidance under section 457A relating to deferred com- pensation of nonqualified entities (Notice 8) 4,347 Letter rulings: And determination letters, areas which will not be issued from: Associates Chief Counsel and Division Counsel (TE/GE) (RP 3) 1,107 Associate Chief Counsel (International) (RP 7) 1,226 And general information letters, procedures (RP 4) 1,118 User fees, request for letter rulings (RP 8) 1,229 Multiemployer plans: Funding (Notice 31) 16,856 WRERA, funding (Notice 42) 20,1011 EMPLOYEE PLANS—Cont. Penalties: Categories of tax returns and claims for refund, tax return preparer penalty under section 6694 (RP 11) 3,313 Tax return preparer (TD 9436) 3,268;correction(Ann15)11, 687 Proposed Regulations: 26 CFR 1.401(k)–0, –3, amended; 1.401(m)–0, –3, amended; suspension or reduction of safe harbor nonelective contri- butions (REG–115699–09) 22,1052 Prototype program, 403(b) plans, request for comments (Ann 34) 18,916 Qualified retirement plans: Covered compensation tables, permitted disparity (RR 2) 2, 245 Required minimum distributions (RMDs) (Notice 9) 5,419 Section 403(b) plans, writtenplan requirement (Notice 3) 2, 250 Regulations: 26 CFR 1.401(k)–0 thru –3, –6, amended; 1.401(m)–0 thru –3, amended; 1.402(c)–2, amended; 1.411(a)–4, amended; 1.414(w)–1, added; 54.4979–1, revised; automatic contri- bution arrangements (TD 9447) 12,694 26 CFR 1.6060–1, amended; 1.6107–1, revised; 1.6109–2, amended; 1.6694–0 thru –4, revised; 1.6695–1, –2, revised; 1.6696–1, revised; 54.6060–1, added; 54.6107–1, added; 54.6109–1, added; 54.6694–1 thru –4, added; 54.6695–1, added; 54.6696–1, added; 54.7701–1, added; tax return pre- parer penalties under sections 6694 and 6695 (TD 9436) 3, 268; correction (Ann 15) 11,687 Suspension or reduction of safe harbor nonelective contributions (REG–115699–09) 22,1052 Technical advice to IRS employees (RP 5) 1,161 EMPLOYMENT TAX COBRA continuation coverage (Notice 27) 16,838 Differential wage payments to active duty members of the uni- formed services (RR 11) 18,896 Letter rulings and information letters issued by Associate Of- fices, determination letters issued by Operating Divisions (RP 1) 1,1 Penalties: Categories of tax returns and claims for refund, tax return preparer penalty under section 6694 (RP 11) 3,313 Tax return preparer (TD 9436) 3,268;correction(Ann15)11, 687 Postponement of certain tax-related deadlines by reason of a fed- erally declared disaster or terroristic or military action (TD 9443) 8,564 Proposed Regulations: 26 CFR 31.3402(t)–0 thru –6, added and reserved; 31.3402(t)–7, added;31.3406(g)–2, amended; 31.6011(a)–4, amended; 31.6051–5, added; 31.6071(a)–1, amended; 31.6302–1, –4, amended; withholding under 2009–26 I.R.B.viJune 29, 2009 EMPLOYMENT TAX—Cont. section 3402(t) (REG–158747–06) 4,362; hearing (Ann 29) 14,757 26 CFR 31.6011(a)–1, -4, amended; 31.6302–0, –1, amended; employer’s annual federal tax return and modifications to the deposit rules (REG–148568–04) 5,421 Qualification to file Form 944, Employer’s ANNUAL Federal Tax Return, or request to file Form 941, Employer’s QUAR- TERLY Federal Tax Return (RP 13) 3,323 Regulations: 26 CFR 31.6011(a)–1, –4, amended; 31.6011(a)–1T, –4T, revised; 31.6302–0, –1, amended; 31.6302–0T, added; 31.6302–1T, revised; employer’s annual federal tax return and modifications to the deposit rules (TD 9440) 5,409 26 CFR 31.6060–1, added; 31.6107–1, added; 31.6109–2, added; 31.6694–1 thru –4, added; 31.6695–1, added; 31.6696–1, added; 31.7701–1, added; tax return preparer penalties under sections 6694 and 6695 (TD 9436) 3,268; correction (Ann 15) 11,687 26 CFR 301.7508A–1, amended; postponement of certain tax-related deadlines by reason of a federally declared dis- aster or terroristic or military action (TD 9443) 8,564 Technical Advice Memoranda (TAMs) (RP 2) 1,87 Time for filing employment tax returns and modifications to de- posit rules (TD 9440) 5,409; (REG–148568–04) 5,421 Withholding on payments by government entities for property and services (REG–158747–06) 4,362;hearing(Ann29)14, 757 ESTATE TAX Actuarial tables for valuing annuities, interests for life or terms of years and remainder or reversionary interests (TD 9448) 20, 942; (REG–107845–08) 20,1014 Actuarial tables under section 7520, update (Notice 18) 10,648 Graduated retained interest (REG–119532–08) 20,1017; correc- tion (Ann 50) 25,1105 Letter rulings and information letters issued by Associate Of- fices, determination letters issued by Operating Divisions (RP 1) 1,1 Penalties: Categories of tax returns and claims for refund, tax return preparer penalty under section 6694 (RP 11) 3,313 Tax return preparer (TD 9436) 3,268; correction (Ann 15) 11, 687 Postponement of certain tax-related deadlines by reason of a fed- erally declared disaster or terroristic or military action (TD 9443) 8,564 Proposed Regulations: 26 CFR 20.2031–7, amended; 20.2032–1, amended; 20.2055–2, amended; 20.2056A–4, amended; 20.7520–1, amended; use of actuarial tables for valuing annuities, interests for life or terms of years, and remainder or rever- sionary interests (REG–107845–08) 20,1014 26 CFR 20.2036–1, amended; grantor retained interest (REG–119532–08) 20,1017; correction (Ann 50) 25,1105 ESTATE TAX—Cont. Regulations: 25 CFR 20.2031–0, revised; 20.2031–7, amended; 20.2031–7A, amended; 20.2031–7T, added; 20.2032–1, amended; 20.2032–1T, added; 20.2055–2, amended; 20.2055–2T, added; 20.2056A–4, amended; 20.2056A-4T, added; 20.7520–1, amended; 20.7520–1T, added; actuarial tables in valuing annuities, interests for life or terms of years and remainder or reversionary interests (TD 9448) 20,942 26 CFR 20.6060–1, added; 20.6107–1, added; 20.6109–1, added; 20.6694–1 thru –4, added; 20.6695–1, added; 20.6696–1, added; 20.7701–1, added; 26.6060–1, added; 26.6107–1, added; 26.6109–1, added; 26.6694–1 thru –4, added; 26.6695–1, added; 26.6696–1, added; 26.7701–1, added; tax return preparer penalties under sections 6694 and 6695 (TD 9436) 3,268; correction (Ann 15) 11,687 26 CFR 301.7508A–1, amended; postponement of certain tax-related deadlines by reason of a federally declared dis- aster or terroristic or military action (TD 9443) 8,564 Technical Advice Memoranda (TAMs) (RP 2) 1,87 EXCISE TAX Credits: Biodiesal and renewable diesel fuels credit, extension of the old ASTM D6751 standard until September 30, 2009 (No- tice 34) 17,876 Calculation of volume of denaturants in alcohol for fuel cred- its (Notice 6) 3,311 Letter rulings and information letters issued by Associate Of- fices, determination letters issued by Operating Divisions (RP 1) 1,1 Mandatory electronic filing of certain excise tax returns, impo- sition and computation of tax, credits and refunds for certain uses and sales of vehicles (REG–116699–07) 13,727 Penalties: Categories of tax returns and claims for refund, tax return preparer penalty under section 6694 (RP 11) 3,313 Tax return preparer (TD 9436) 3,268;correction(Ann15)11, 687 Postponement of certain tax-related deadlines by reason of a fed- erally declared disaster or terroristic or military action (TD 9443) 8,564 Proposed Regulations: 26 CFR 41.4481–1, –2, amended; 41.4483–3, amended; 41.4483–7, removed; 41.6001–1, –2, amended; 41.6011(a)–1, amended; 41.6071(a)–1, amended; 41.6156–1, removed; highway use tax; sold vehicles and electronic filing (REG–116699–07) 13,727 Regulations: 26 CFR 40.6060–1, added; 40.6107–1, added; 40.6109–1, added; 40.6694–1 thru –4, added; 40.6695–1, added; 40.6696–1, added; 40.7701–1, added; 41.6060–1, added; 41.6107–1, added; 41.6109–2, added; 41.6694–1 thru –4, added; 41.6695–1, added; 41.6696–1, added; June 29, 2009vii2009–26 I.R.B. EXCISE TAX—Cont. 41.7701–1, added; 44.6060–1, added; 44.6107–1, added; 44.6109–1, added; 44.6694–1 thru –4, added; 44.6695–1, added; 44.6696–1, added; 44.7701–1, added; 55.6060–1, added; 55.6107–1, added; 55.6109–1, added; 55.6694–1 thru –4, added; 55.6695–1, added; 55.6696–1, added; 55.7701–1, added; 156.6060–1, added; 156.6107–1, added; 156.6109–1, added; 156.6694–1 thru –4, added; 156.6695–1, added; 156.6696–1, added; 156.7701–1, added; 157.6060–1, added; 157.6107–1, added; 157.6109–1, added; 157.6694–1 thru –4, added; 157.6695–1, added; 157.6696–1, added; 157.7701–1, added; 301.7701–15, amended; tax return preparer penal- ties under sections 6694 and 6695 (TD 9436) 3,268; correction (Ann 15) 11,687 26 CFR 301.7508A–1, amended; postponement of certain tax-related deadlines by reason of a federally declared dis- aster or terroristic or military action (TD 9443) 8,564 Technical Advice Memoranda (TAMs) (RP 2) 1,87 EXEMPT ORGANIZATIONS Academic institution initiative, comments (Ann 26) 14,755 Annual notice to donors regarding pending and settled declara- tory judgment suits (Ann 1) 1,242 Declaratory judgment suits (Ann 33) 15,799 Division web site address, request (Ann 25) 14,755 Letter rulings: And determination letters: Areas which will not be issued from Associates Chief Counsel and Division Counsel (TE/GE) (RP 3) 1,107 Exemption application determination letter rulings under sections 501 and 521 (RP 9) 2,256 And general information letters, procedures (RP 4) 1,118 User fees, request for letter rulings (RP 8) 1,229 List of organizations classified as private foundations (Ann 9) 9, 643;(Ann22)13,731;(Ann38)19,940;(Ann48)23,1071 Penalties: Categories of tax returns and claims for refund, tax return preparer penalty under section 6694 (RP 11) 3,313 Tax return preparer (TD 9436) 3,268; correction (Ann 15) 11, 687 Regulations: 26 CFR 1.6060–1, amended; 1.6107–1, revised; 1.6109–2, amended; 1.6694–0 thru –4, revised; 1.6695–1, –2, revised; 1.6696–1, revised; 53.6060–1, added; 53.6107–1, added; 53.6109–1, added; 53.6694–1 thru –4, added; 53.6695–1, added; 53.6696–1, added; 53.7701–1, added; 56.6060–1, added; 56.6107–1, added; 56.6109–1, added; 56.6694–1 thru –4, added; 56.6695–1, added; 56.6696–1, added; 56.7701–1, added; tax return preparer penalties under sections 6694 and 6695 (TD 9436) 3,268; correction (Ann 15) 11,687 Revocations (Ann 3) 6,459;(Ann10)9,644; (Ann 21) 13,730; (Ann 27) 14,756; (Ann 32) 15,799; (Ann 37) 19,940;(Ann 41) 20,1026; (Ann 47) 23,1071; (Ann 54) 26,1128 EXEMPT ORGANIZATIONS—Cont. Suspension of tax-exempt statusof terrorist organization (Ann 17) 12,714 Technical advice to IRS employees (RP 5) 1,161 Tuition programs, modification to Notice 2001-55 (Notice 1) 2, 250 GIFT TAX Actuarial tables for valuing annuities, interests for life or terms of years and remainder or reversionary interests (TD 9448) 20, 942; (REG–107845–08) 20,1014 Actuarial tables under section 7520, update (Notice 18) 10,648 Letter rulings and information letters issued by Associate Of- fices, determination letters issued by Operating Divisions (RP 1) 1,1 Penalties: Categories of tax returns and claims for refund, tax return preparer penalty under section 6694 (RP 11) 3,313 Tax return preparer (TD 9436) 3,268;correction(Ann15)11, 687 Postponement of certain tax-related deadlines by reason of a fed- erally declared disaster or terroristic or military action (TD 9443) 8,564 Proposed Regulations: 26 CFR 25.2512–5, amended; 25.2522(c)–3, amended; 25.7520–1, –3, amended; 25.2512–5A, amended; 25.2512–5T, added;25.2522–(c)–3, amended; 25.2522(c)–3T, added; 25.7520–1, amended; 25.7520–1T, added; 25.7520–3, amended; 25.7520–3T, added; use of actuarial tables in valuing annuities, interests for life or terms of years, and remainder or reversionary interests (REG–107845–08) 20,1014 Regulations: 26 CFR 25.2512–0, revised; 25.2512–5, amended; use of ac- tuarial tables in valuing annuities, interests for life or terms of years and remainder or reversionary interests (TD 9448) 20,942 26 CFR 25.6060–1, added; 25.6107–1, added; 25.6109–1, added; 25.6694–1 thru –4, added; 25.6695–1, added; 25.6696–1, added; 25.7701–1, added; tax return preparer penalties under sections 6694 and 6695 (TD 9436) 3,268; correction (Ann 15) 11,687 26 CFR 301.7508A–1, amended; postponement of certain tax-related deadlines by reason of a federally declared dis- aster or terroristic or military action (TD 9443) 8,564 Technical Advice Memoranda (TAMs) (RP 2) 1,87 INCOME TAX Actuarial tables for valuing annuities, interests for life or terms of years, and remainder or reversionary interests (TD 9448) 20,942; corrections (Ann 52) 25,1106; (REG–107845–08) 20,1014 Actuarial tables under section 7520, update (Notice 18) 10,648 2009–26 I.R.B.viiiJune 29, 2009 INCOME TAX—Cont. Advance Pricing Agreement (APA) Program, annual report to the public, 2008 (Ann 28) 15,760 Allocation of consideration and allocation and recovery of basis in transactions involving corporate stock or securities (REG–143686–07) 8,579; correction (Ann 40) 20,1023 Anonymous tax return information, disclosure by tax return pre- parer (Notice 13) 6,447 Annual notice to donors regarding pending and settled declara- tory judgment suits (Ann 1) 1,242 Bonds: Allocation of qualified school construction bond (QSCB) na- tional limitation for 2009 (Notice 35) 17,876 Build America Bonds, Recovery Zone Economic Develop- ment Bonds (Notice 26) 16,833 National and area median gross income figures, guidance for 2009 (RP 27) 19,938 Qualified energy conservation bonds, allocations for 2009 (Notice 29) 16,849 Qualified zone academy bond limitation (Notice 30) 16,852 Recovery zone economic development bonds, recovery zone facility bonds (Notice 50) 26,1118 Business use of employer-provided cell phones (Notice 46) 23, 1068 Calculation of amount includible in income under section 409A, correction to REG–148326–05 (Ann 14) 11,687 Conduit financing arrangements (REG–113462–08) 4,379 Consolidated returns, intercompany transactions (TD 9442) 6, 434; correction (Ann 13) 11,686; correction (Ann 20) 12,716 Corporations: Creditor continuity of interest (TD 9434) 4,339 Foreign base company sales income (TD 9438) 5,387;cor- rection(Ann30)15,794; (REG–150066–08) 5,423;cor- rection (Ann 31) 15,798; hearing cancelled (Ann 36) 18, 927 Formless conversion of partnership to S corporation (RR 15) 21,1035 Guidance necessary to facilitate business election filing, fi- nalization of controlled group qualification rules (TD 9451) 23,1060 Transaction of interest, controlled foreign corporation (CFC), subpart F income partnership blocker (Notice 7) 3,312 Transfers by U.S. persons of stock or securities to foreign corporations (TD 9446) 9,607; correction (Ann 23) 13, 731; additional corrections (Ann 45) 21,1040 Transfers of stock or securitiesto foreign corporations under section 304 (TD 9444) 9,603; (REG–147636–08) 9,641 Treatment of stock of a controlled corporation under section 355(a)(3)(B) (TD 9435) 4,333; (REG–150670–07) 4,378 Cost of living adjustments for inflation, recent statutory changes (RP 21) 16,860 Credits: Alternative motor vehicle credit, phase-out (Notice 37) 18, 898 Election of the investment tax credit in lieu of the production tax credit (Notice 52) 25,1094 INCOME TAX—Cont. First-time homebuyer credit, allocation between unmarried co-purchasers (Notice 12) 6,446 Low-income housing credit: Private activity bonds (Notice 21) 13,724 Utility allowances for sub-metered low-income units (No- tice 44) 21,1037 New clean renewable energy bonds (Notice 33) 17,865 Nonbusiness energy property credit (Notice 53) 25,1095 Nonconventional source fuel credit, inflation adjustment fac- tor and phase-out amount for CY 2008 (Notice 32) 17,865 Qualified plug-in electric vehicle credit (Notice 54) 26,1124 Qualifying advanced coal project credit (Notice 24) 16,817 Qualifying gasification project credit (Notice 23) 16,802 Rates for tax credit bonds (Notice 15) 6,449 Renewable electricity, refinedcoal, and Indian coal produc- tion credit, 2009 inflation adjustment (Notice 40) 19,931 Residential energy efficient property credit (Notice 41) 19, 933 Work opportunity credit, unemployed veterans and discon- nected youth, targeted groups (Notice 28) 24,1082 Declaratory judgment suits (Ann 33) 15,799 Definition of “Change of control” under section 409A (Notice 49) 25,1093 Depreciation: 2009, limitation on depreciation deductions for passenger au- tomobiles (RP 24) 17,885 Election to forgo additional first year depreciation deduction (RP 16) 6,449 Disciplinary actionsinvolving attorneys,certified public accoun- tants, enrolled agents, and enrolled actuaries (Ann 2) 5,424; (Ann 8) 8,598; (Ann 11) 10,663; (Ann 16) 11,691; (Ann 24) 13,732; (Ann 35) 17,892; (Ann 46) 21,1040; (Ann 53) 25, 1107; (Ann 55) 26,1128 Disclosure: Of return information to the Bureau of Economic Analysis (TD 9439) 5,416; correction (Ann 12) 11,686 Or use of information by preparers of returns (TD 9437) 4, 341 Disguised sales, section 707, REG–149519–03 withdrawn (Ann 4) 8,597 Employer-provided vehicles, cents-per-mile valuation rule, max- imum vehicle values, 2009 (RP 12) 3,321 FBAR filing requirements (Ann 51) 25,1105 Foreign earned income exclusion (RP 22) 16,862 Guidance priority list, recommendations for 2009–2010 (Notice 43) 21,1037 Guidance regarding treatment of certain obligations under sec- tion 956(c) (Notice 10) 5,419 Health savings accounts (HSAs), cost of living adjustments for inflation for 2010 (RP 29) 22, 1050 Home Affordable Modification Program (HAMP); payments made to a REMIC (Notice 36) 17,883 Information reporting: Deadline for brokers to furnish payee statements (Notice 11) 5,420 June 29, 2009ix2009–26 I.R.B. INCOME TAX—Cont. Payments made in settlement of payment card and third party network transactions under section 6050W, request for comments (Notice 19) 10,660 Requirements for brokers for sales and transfers of securities and issuers of securities for corporation actions affecting basis, request for comments (Notice 17) 8,575 Sales or exchanges of standing timber for lump-sum payments (TD 9450) 24,1073 Insurance companies, prevailing state assumed interest rate ta- bles, 2009 (RR 3) 5,382 Insurance contracts: Investors who purchase life insurance contracts (RR 14) 21, 1031 Safe harbor under sections 7702 and 7702A for contracts with a maturity age of 100, life insurance (Notice 47) 24,1083 Sale or surrender (RR 13) 21,1029 Treatment of certain employer-owned life insurance contracts (Notice 48) 24,1085 Interest: Investment: Federal short-term, mid-term, and long-term rates for: January 2009 (RR 1) 2,248 February 2009 (RR 5) 6,432 March 2009 (RR 8) 10,645 April 2009 (RR 10) 14,738 May 2009 (RR 12) 19,928 June 2009 (RR 16) 23,1058 Rates, underpayments and overpayments, quarter beginning: April 1, 2009 (RR 7) 13,717 July 1, 2009 (RR 17) 26,1111 Interim guidance under section 457A relating to deferred com- pensation of nonqualified entities (Notice 8) 4,347 Interim standards under section 6694(a) (Notice 5) 3,309 Letter rulings: And determination letters, areas which will not be issued from: Associates Chief Counsel and Division Counsel (TE/GE) (RP 3) 1,107 Associate Chief Counsel (International) (RP 7) 1,226 And information letters issued by Associate Offices, determi- nation letters issued by Operating Divisions (RP 1) 1,1 Losses: Modification to 5-year carryback of net operating losses of small businesses (RP 26) 19,935 Net operating losses (RP 19) 14,747 Tax treatment of losses from criminally fraudulent investment arrangements (RR 9) 14,735 Theft losses deductions from a criminally fraudulent invest- ment arrangements (RP 20) 14,749 Modifications for mortgage loans held by certain securitization vehicles (RP 23) 17,884 Money market fund, certain payments received from its invest- ment advisor to maintain per share net asset value of $1.00 (RP 10) 2,267 INCOME TAX—Cont. Mortgage insurance premiums, information reporting, deducting prepaid premiums (TD 9449) 22,1044; (REG–107271–08) 22, 1051 Partnerships: Conversion of partnership items with respect to tax avoidance transactions (REG–138326–07) 9,638; hearing cancelled (Ann 49) 24,1092 Determination of distributive share when a partner’s interest changes (REG–144689–04) 18,906 Partner-level items in determining withholding tax, effec- tively connected U.S. trade or business income allocated to foreign partners, correction to TD 9394 (Ann 42) 20,1027 Penalties: Categories of tax returns and claims for refund, tax return preparer penalty under section 6694 (RP 11) 3,313 Tax return preparer (TD 9436) 3,268;correction(Ann15)11, 687 Postponement of certain tax-related deadlines by reason of a fed- erally declared disaster or terroristic or military action (TD 9443) 8,564 Pre-Filing Agreement (PFA) program, extended (RP 14) 3,324 Private foundations, organizations now classified as (Ann 9) 9, 643;(Ann22)13,731;(Ann38)19,940;(Ann48)23,1071 Procedures for administrative review of a determination that an authorized recipient has failedto safeguard tax returns or re- turn information (TD 9445) 9,635 Proposed Regulations: 26 CFR 1.163–11, added; 1.6050H-3, added; alloca- tion and reporting of mortgage insurance premiums (REG–107271–08) 22,1051 26 CFR 1.170A–12, amended; 1.642(c)–6, amended; 1.664–4, amended; 1.7520–1, amended; use of actuarial ta- bles in valuing annuities, interests for life or terms of years, and remainder or reversionary interests (REG–107845–08) 20,1014 26 CFR 1.301–2, added; 1.302–2(c), removed; 1.302–5, added; 1.304–1, revised; 1.304–2, –3, –5, amended; 1.351–2, amended; 1.354–1, amended; 1.355–1, amended; 1.356–1, amended; 1.358–1, –2, revised; 1.358–6, amended; 1.368–1, amended; 1.861–12, added; 1.1002–1, redesignated as 1.1001–6, and amended; 1.1016–2, amended; 1.1374–10, revised; the allocation of consider- ation and allocation and recovery of basis in transactions involving corporate stock or securities (REG–143686–07) 8,579; correction (Ann 40) 20,1023 26 CFR 1.355–2, amended; guidance regarding the treat- ment of stock of a controlledcorporation under section 355(a)(3)(B) (REG–150670–07) 4,378 26 CFR 1.367(a), revised; 1.482–0, –1, –2, –4, –8, amended; 1.482–7, revised; 1.482–9, added; section 482, methods to determine taxable income in connection with a cost sharing arrangement (CSA) (REG–144615–02) 7,561; correction (Ann 19) 12,715 26 CFR 1.367(a)–9, added; 1.367(b)–4, amended; 1.1248–1, amended; application of section 367 to section 351 ex- change resulting from a transaction described in section 2009–26 I.R.B.xJune 29, 2009 INCOME TAX—Cont. 304(a)(1); treatment of gain recognized under section 301(c)(3) for purposes of section 1248 (REG–147636–08) 9,641 26 CFR 1.706–0, –2 thru –5, added; 1.706–1, amended; de- termination of distributive share when a partner’s interest changes (REG–144689–04) 18,906 26 CFR 1.707–0, –3, –5, thru –9, amended; 1.752–3, amended; section 707 regarding disguised sales, generally, REG–149519–03 withdrawn (Ann 4) 8,597 26 CFR 1.881–3, amended; conduit financing arrangements (REG–113462–08) 4,379 26 CFR 1.954–3, amended; guidance regarding foreign base company sales income(REG–150066–08) 5,423; correc- tions (Ann 31) 15,798; hearing cancelled (Ann 36) 18,927 26 CFR 301.6231(c)–3, amended; 301.6231(c)–9, added; tax avoidance transactions (REG–138326–07) 9,638; hearing cancelled (Ann 49) 24,1092 26 CFR 301.6707–1, added; section 6707 and the failure to furnish information regarding reportable transactions (REG–160872–04) 4,358 Publications: 1167, General Rules and Specifications for Substitute Forms and Schedules (RP 17) 7,517 1220, additional changes affecting tax year 2008 filing of in- formation returns (Ann 7) 10,663 Qualified board or exchange under section 1256(g)(7)(C), Dubai Mercantile Exchange (RR 4) 5,408 Qualified mortgage bonds (QMBs) and mortgage credit certifi- cates (MCCs), average area housing purchase prices for 2009 (RP 18) 11,670 Regulated investment companies (RICs) and real estate invest- ment trusts (REITs), self-determination of deficiency dividend under section 860(e)(4) (RP 28) 20,1011 Regulations: 26 CFR 1.163–11T, added; 1.6050–3T, added; allocation and reporting of mortgage insurance premiums (TD 9449) 22, 1044 26 CFR 1.170A–12, amended; 1.170A–12T, added; 1.642(c), amended; 1.664–2, –4, amended; 1.664–4T, added; 1.664–4A, amended; 1.7520–1T, added; 1.7520–1, amended; use of actuarial tables in valuaing annuities, interests for life or terms of years and remainder or rever- sionary interests (TD 9448) 20,942; corrections (Ann 52) 25,1106 26 CFR 1.338–1, amended; 1.367(a)–3, amended; 1.367(a)–3T, –8T, removed; 1.367(a)–8, revised; 602.101, amended; transfers by U.S. persons of stock or securities to foreign corporations (TD 9446) 9,607; correction (Ann 23) 13,731; additional corrections (Ann 45) 21,1040 26 CFR 1.355–0 thru –2, amended; 1.355–0T, –2T, added; guidance regarding the treatment of stock of a controlled corporation under section 355(a)(3)(B) (TD 9435) 4,333 26 CFR 1.367(a)–1, added; 1.367(a)–1T, amended; 1.482–0, –0T, –1, –1T, –2T. –4T, –5, amended; 1.482–7, redes- ignated as 1.482–7A; 1.482–7T, added, 1.482–8, –8T, –9T, amended; 1.861–17, amended; 1.6662–6, amended; INCOME TAX—Cont. 301.7701–1, amended; 602.101, amended; section 482, methods to determine taxable income in connection with a cost sharing arrangement (CSA) (TD 9441) 7,460;cor- rection (Ann 18) 12,714; additional corrections (Ann 39) 20,1022 26 CFR 1.367(a)–(3), amended; 1.367(a)–9T, added 1.367(b)–4, amended; 1.367(b)–4T, added; 1.1248–1, amended; 1.248–1T, added; application of section 367 to section 351 exchange resulting from a transaction de- scribedinsection304(a)(1);treatment of gain recognized under section 301(c)(3) for purposes of section 1248 (TD 9444) 9,603 26 CFR 1.368–1, amended; creditor continuity of interest (TD 9434) 4,339 26 CFR 1.954–3, amended; 1.954–3T, added; guidance re- garding foreign base company sales income (TD 9438) 5, 387; corrections (Ann 30) 15,794 26 CFR 1.1446–6, amended; 1.1464–1, amended; 1.6151–1, amended; special rules to reduce section 1446 withholding, correction to TD 9394 (Ann 42) 20,1027 26 CFR 1.1502–13, –28, amended; consolidated returns, in- tercompany obligations (TD 9442) 6,434; correction (Ann 13) 11,686;correction(Ann20)12,716 26 CFR 1.1563–1, added; 1.1563–1T, removed; 1.1563–3(d)(3), amended; 602.101, amended; guidance necessary to facilitate business election filing; finalization of controlled group qualification rules (TD 9451) 23,1060 26 CFR 1.6060–1, amended; 1.6107–1, revised; 1.6109–2, amended; 1.6694–0 thru –4, revised; 1.6695–1, –2, re- vised; 1.6696–1, revised; 301.7701–15, amended; 602.101, amended; tax return preparer penalties under sections 6694 and 6695 (TD 9436) 3,268; correction (Ann 15) 11,687 26 CFR 301.6045–4, amended; information reporting for lump-sum timber sales (TD 9450) 24,1073 26 CFR 301.6103(j)(1)–1, amended; 301.6103(j)(1)–1T, re- moved; disclosure of return information to the Bureau of Economic Analysis (TD 9439) 5,416; correction (Ann 12) 11,686 26 CFR 301.6103(j)(1)–1T, added; disclosure of return infor- mation to the Bureau of Economic Analysis, correction to TD 9439 (Ann 12) 11,686 26 CFR 301.6103(p)(4)–1, added; 301.6103(p)(4)–1T, re- moved; 301.6103(p)(7)–1, added; 301.6103(p)(7)–1T, removed; procedures for administrative review of a deter- mination that an authorized recipient has failed to safeguard tax returns or return information (TD 9445) 9,635 26 CFR 301.7216–3, amended; 301.7216–3T, removed; amendments to the section 7216 regulations - disclosure or use of information by preparers of returns (TD 9437) 4,341 26 CFR 301.7508A–1, amended; postponement of certain tax-related deadlines by reason of a federally declared dis- aster or terroristic or military action (TD 9443) 8,564 Revocations, exempt organizations (Ann 3) 6,459;(Ann10)9, 644; (Ann 21) 13,730; (Ann 27) 14,756; (Ann 32) 15,799; (Ann 37) 19,940; (Ann 41) 20,1026; (Ann 47) 23,1071;(Ann 54) 26,1128 June 29, 2009xi2009–26 I.R.B. INCOME TAX—Cont. Section 355, letter rulings (RP 25) 24,1088 Section 382: Emergency Economic Stabilization Act of 2008 (EESA), ad- ditional guidance (Notice 38) 18,901 Limitation, ownership changes, pre-change losses (Notice 14) 7,516 Section 482, methods to determine taxable income in connection with a cost sharing arrangement (CSA) (TD 9441) 7,460;cor- rection (Ann 18) 12,714; additional corrections (Ann 39) 20, 1022; (REG–144615–02) 7,561;correction(Ann19)12,715 Section 6707 and the failure to furnish information regarding re- portable transactions (REG–160872–04) 4,358 Standard Industry Fare Level (SIFL) formula (RR 6) 12,694 Stocks: Section 305 REIT distributions of stock (RP 15) 4,356 Treatment of stock of a controlled corporation under section 355(a)(3)(B) (TD 9435) 4,333; (REG–150670–07) 4,378 Substitute forms and schedules, general rules and specifications (RP 17) 7,517 Tax conventions: Arbitration Board guidelinesunder the United States–Bel- gium Income Tax Treaty (Ann 44) 24,1079 Memorandum of Understanding Between the United States and the Kingdom of Belgium (Ann 43) 24,1075 Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities (For Withholding in 2008), and Publi- cation 901, U.S. Tax Treaties (Rev. April 2008), changes in tables 1 and 2 for Bulgaria, Canada, and Iceland (Ann 5) 8, 569 Taxpayer identification number (TIN), matching program and new section 6050W (Ann 6) 9,643 Technical Advice Memoranda (TAMs) (RP 2) 1,87 Transferred basis, reorganization acquisition (Notice 4) 2,251 Update to Publication 1220, additional changes affecting tax year 2008 filing of information returns (Ann 7) 10,663 Uniform capitalization regulations under section 263A, property acquired for resale, request for public comments (Notice 25) 15,758 SELF-EMPLOYMENT TAX Letter rulings and information letters issued by Associate Of- fices, determination letters issued by Operating Divisions (RP 1) 1,1 Technical Advice Memoranda (TAMs) (RP 2) 1,87 2009–26 I.R.B.xiiJune 29, 2009 June 29, 20092009–26 I.R.B. 2009–26 I.R.B.June 29, 2009 June 29, 20092009–26 I.R.B. INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superin- tendent of Documents when their subscriptions must be renewed. CUMULATIVE BULLETINS The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are sold on a single copy basis andare notincluded as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the Superintendent of Documents. ACCESS THE INTERNAL REVENUE BULLETIN ON THE INTERNET You may view the Internal Revenue Bulletin on the Internet at www.irs.gov. Select Businesses. Under Businesses Topics, select More Topics. Then select Internal Revenue Bulletins. INTERNAL REVENUE BULLETINS ON CD-ROM Internal Revenue Bulletins are available annually as part ofPublication 1796 (Tax Products CD-ROM). The CD-ROM can be purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders) or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January. HOW TO ORDER Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance, detach entire page, and mail to the Superintendent of Documents, P.O. Box 371954, Pittsburgh PA, 15250–7954. Please allow two to six weeks, plus mailing time, for delivery. WE WELCOME COMMENTS ABOUT THE INTERNAL REVENUE BULLETIN If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov) or write to the IRS Bulletin Unit, SE:W:CAR:MP:T:T:SP, Washington, DC 20224. Internal Revenue Service W ashington,DC20224 Official Business Penalty for Private Use, $300
Continua la tua ricerca in ChatGPT o Claude
Collega Omnilex per cercare nel corpus legale dal tuo assistente IA.